Cure Pharmaceutical Holding Corp (OTCMKTS:CURR) entered a pact to acquire 100% of Sera Labs. The company will pay cash of $1 million and $19 million common shares at $2.75. It also agreed to provide working capital of $4 million to support the growth of Sera Labs.
Transaction to close in Q4 2020
The shareholders of Sera Labs can also receive $20 million in the common stock of Cure Pharmaceutical at $3.34 for each share in two years, subject to achieving certain financial targets. Cure Pharma expects to close the transaction in Q4 2020.
Excellent sales growth
Sera Labs, which is established in2018, reported sales of $1.8 million recently. It is on the backdrop of the wide acceptance of its products across cannabidiol derived health and wellness, beauty, and pet products. The company expects to post significant growth going forward.
CEO of Sera Labs, Nancy Duitch, said Sera Labs quickly established leadership in the CBD industry. He said the company’s ability to quickly capture a wide distribution network serving the major distributors and retailers with trusted and value-driven brands helped it achieve success. The demand for hemp-based cannabidiol products expects to cross $20 billion by the year 2024.
CEO of Cure Pharmaceutical, Rob Davidson, said the takeover of Sera Labs expects to add a monetization platform and a growing brand portfolio that fits the products, development capabilities, and existing marketing verticals of Cure Pharmaceutical. Merging the processes and products of Sera Labs with Cure Pharmaceutical products and capabilities will help to improve profitability and margins.
CBD OTF shows improved bioavailability
Cure Pharmaceutical Cannabidiol Oral Thin Film demonstrated improved CBD bioavailability in healthy subjects than 25 mg soft gels. During the pk study in fourteen healthy adults, the company showed Tmax and Cmax using CBD OTF compared to the commercially available cannabidiol softgel.
Cannabidiol is fat-soluble, and its oral bioavailability is limited. As a result, the body could not absorb CBD. Cure Pharmaceutical’s proprietary delivery platform – CUREform, is developed to overcome the obstacles and deliver ingredients effectively. CSO of Cure Pharmaceutical, Vered Gigi, said this study tells that CUREform technology promotes bioavailability and allows lower doses.