$CURR Big News ~ CURE Pharmaceutical to Acquire Sera Labs, a Leader in the CBD Industry with Proprietary Products and Multi-Channel Distribution Platform, in a $20 Million Transaction
MOU to acquire 100% of privately held Sera Labs for $20 million, which consists primarily of stock with key earn out considerations totaling up to an additional $20 million within two years of completing the acquisition.
Sera Labs brings to CURE a high-margin, retail and direct-to-consumer business with accelerating sales of its more than 20 products in the health & wellness, beauty, and pets categories and strong traction in both e-commerce and wholesale-to-retail distribution with total food, drug, mass retail doors exceeding 8,850 in the U.S. to date.
Founded and managed by Nancy Duitch, one of the nation’s prominent female entrepreneurs, Sera Labs has among its leadership top consumer packaged goods industry executives who have helped establish the company as a leader in the CBD sector.
OXNARD, Calif., July 28, 2020 (GLOBE NEWSWIRE) -- CURE Pharmaceutical (OTC: CURR), an innovative drug delivery and development company, today announced that it has entered into a Memorandum of Understanding to acquire 100% of privately held Sera Labs for total up-front consideration of $20 million, comprising $19 million in CURE stock at a valuation of $2.75 per share, and $1 million in cash, with an initial, additional commitment of $4 million for working capital in support of accelerating Sera Labs’ growth. The transaction also includes the potential for an earn out of up to $20 million in CURE stock at a valuation of $3.34 per share within two years of the closing of the acquisition, contingent upon Sera Labs achieving certain key financial targets. The structure of the earn out is designed to align risk and reward between CURE stockholders and Sera Labs’ management, with a focus on strong operational alignment and financial execution. The transaction is expected to close, subject to a definitive agreement and customary closing conditions, by the fourth quarter of 2020.
Sera Labs was founded in 2018. Net sales (unaudited) for the most recent quarter ended June 30, 2020, totaled $1.8 million, reflecting a steep sales growth trajectory and early strong reception for its novel products across the CBD-based beauty, health & wellness, and pet product markets. The increase in sales, as projected for the third and fourth quarters and beyond, is subject to this agreement’s new infusion of capital, and attributable to newly signed distribution agreements, the acceptance of additional retailers for CBD, and the explosive growth of Sera Labs’ digital opt-in subscription model, which is just beginning to show rapid growth in line with internal projections.
“Our acquisition of Sera Labs will add to CURE a growing brand portfolio and monetization platform that fits remarkably well with CURE’s development capabilities, products, and existing market verticals,” said Rob Davidson, CURE Pharmaceutical CEO. “By integrating Sera Labs’ products and processes with those of CURE’s, and leveraging our cGMP manufacturing facility to realize economies of scale, we will drive improved margins and profitability. This acquisition comes on the heels of our most recent pharmacokinetic study, which showed that that our CUREform thin film technology improved cannabidiol bioavailability, and sets the stage for potentially exciting opportunities to apply our innovative dosage forms to Sera Labs’ products. We look forward to joining the forces of the Sera Labs and CURE teams and to Nancy Duitch’s continued leadership at the helm of Sera Labs and as a key member of CURE‘s leadership team upon closing of the transaction.”
https://finance.yahoo.com/news/cure-pharmaceu...00993.html
MOU to acquire 100% of privately held Sera Labs for $20 million, which consists primarily of stock with key earn out considerations totaling up to an additional $20 million within two years of completing the acquisition.
Sera Labs brings to CURE a high-margin, retail and direct-to-consumer business with accelerating sales of its more than 20 products in the health & wellness, beauty, and pets categories and strong traction in both e-commerce and wholesale-to-retail distribution with total food, drug, mass retail doors exceeding 8,850 in the U.S. to date.
Founded and managed by Nancy Duitch, one of the nation’s prominent female entrepreneurs, Sera Labs has among its leadership top consumer packaged goods industry executives who have helped establish the company as a leader in the CBD sector.
OXNARD, Calif., July 28, 2020 (GLOBE NEWSWIRE) -- CURE Pharmaceutical (OTC: CURR), an innovative drug delivery and development company, today announced that it has entered into a Memorandum of Understanding to acquire 100% of privately held Sera Labs for total up-front consideration of $20 million, comprising $19 million in CURE stock at a valuation of $2.75 per share, and $1 million in cash, with an initial, additional commitment of $4 million for working capital in support of accelerating Sera Labs’ growth. The transaction also includes the potential for an earn out of up to $20 million in CURE stock at a valuation of $3.34 per share within two years of the closing of the acquisition, contingent upon Sera Labs achieving certain key financial targets. The structure of the earn out is designed to align risk and reward between CURE stockholders and Sera Labs’ management, with a focus on strong operational alignment and financial execution. The transaction is expected to close, subject to a definitive agreement and customary closing conditions, by the fourth quarter of 2020.
Sera Labs was founded in 2018. Net sales (unaudited) for the most recent quarter ended June 30, 2020, totaled $1.8 million, reflecting a steep sales growth trajectory and early strong reception for its novel products across the CBD-based beauty, health & wellness, and pet product markets. The increase in sales, as projected for the third and fourth quarters and beyond, is subject to this agreement’s new infusion of capital, and attributable to newly signed distribution agreements, the acceptance of additional retailers for CBD, and the explosive growth of Sera Labs’ digital opt-in subscription model, which is just beginning to show rapid growth in line with internal projections.
“Our acquisition of Sera Labs will add to CURE a growing brand portfolio and monetization platform that fits remarkably well with CURE’s development capabilities, products, and existing market verticals,” said Rob Davidson, CURE Pharmaceutical CEO. “By integrating Sera Labs’ products and processes with those of CURE’s, and leveraging our cGMP manufacturing facility to realize economies of scale, we will drive improved margins and profitability. This acquisition comes on the heels of our most recent pharmacokinetic study, which showed that that our CUREform thin film technology improved cannabidiol bioavailability, and sets the stage for potentially exciting opportunities to apply our innovative dosage forms to Sera Labs’ products. We look forward to joining the forces of the Sera Labs and CURE teams and to Nancy Duitch’s continued leadership at the helm of Sera Labs and as a key member of CURE‘s leadership team upon closing of the transaction.”
https://finance.yahoo.com/news/cure-pharmaceu...00993.html
