Premama maker secures $1.8M of planned $3.5M Series B financing round

PREMAMA parent Luna Pharmaceuticals has raised more than $1.8 million in a Series B round of funding that it hopes will eventually bring in $3.5 million. / COURTESY PREMAMA
PREMAMA parent Luna Pharmaceuticals has raised more than $1.8 million in a Series B round of funding that it hopes will eventually bring in $3.5 million. / COURTESY PREMAMA

PROVIDENCE – Luna Pharmaceuticals Inc., maker of Premama products, has raised more than half of a $3.5 million Series B equity round, according to a federal filing, which it plans to use it to grow sales, add employees and become profitable.
The Providence-based startup has so far secured $1.8 million of the $3.5 million round, according to a filing with the U.S. Securities and Exchange Commission. The investment was led by New York lower mid-market private equity firm River Hollow Partners.
Luna, which incorporated in 2013, will keep the round open until up to the end of January, according to Dan Aziz, president and founder.
“We’re going to raise whatever we can between now and then,” Aziz said.
The money will go toward growing sales and adding up to two more full-time employees next year. Aziz hopes the cash injection also will help the company become profitable by the end of 2017.
“It’s a little too early to tell, but in an ideal world this would be enough to take us to profitability,” he said.
The company, which makes a line of natural powdered drink mixes and soft chews to support maternity wellness, has realized rapid growth in the past year. Indeed, Aziz reports 2016 sales through October have increased to 350 percent more than all of 2015 sales.
The company’s products, previously only available at CVS Pharmacy and select GNC retail locations, are now being sold at Walgreens, The Vitamin Shoppe and Spouts Farmers Market Co. Sales also continue to grow online.
“It’s been a very exciting 2016,” Aziz said.
Luna completed a $1 million Series A round last year, closing with an additional $400,000 to raise $1.4 million. That round was led by Cherrystone Angel Group, an angel group based in Rhode Island.

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