Cure Pharmaceuticals Holdings (OTCMKTS:CURR) has signed a definitive agreement for the acquisition of Sera Labs Inc. The $20 million acquisition of the health, wellness, and Beauty brand marketing company, will close in October.
CURE acquires Sera Labs to leverage opportunities in the wellness sector
According to the transaction structure, the company paid $20 million upfront for Sera Labs, of which $1 million is in cash. The other $19 million has been paid in the form of CURE shares at $2.75 per share. The deal comprises an initial $4 million additional commitment for working capital and the support of Sera Labs’ growth. The agreement also includes incentives of up to an extra $20 million in CURE shares at $3.34 per share within two years. Most importantly, the earnings structure balances the risk/reward between Sera Lab’s management and CURE shareholders.
This deal will align the high-margin, direct-to-consumer, and retail business platform to CURE’s cGMP manufacturing of different dosage forms for enhanced actives delivery. This includes health and wellness, pharmaceuticals, and nutraceutical products delivered through CURE’s oral dissolvable thin-film tech.
Acquisition lines Sera labs for more success in 2021
Rob Davidson, the CEO of CURE Pharmaceuticals, said that the Sera Labs acquisition has been validated in recent months because of a solid cultural fit and enhanced opportunities. The opportunities include a focus on tele-wellness via which the company will bring science-based products to consumers. The products aim at meeting the personalized wellness needs of customers. Davidson added that soon consumers will access CURE’s novel formulations through the Sera Labs brand. He added that the remainder of 2020 is setting the stage for more success if Sera Labs’ wellness business in 2021.
Sera Labs CEO and founder Nancy Duitch are expected to continue as its CEO after acquisition. She will also assume the role of a chief strategy officer of the Wellness Division of CURE. Nancy said that since the establishment of Sera Labs, they have made a significant breakthrough in becoming a leader in CBD health &wellness and beauty sectors.