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Cure Pharmaceutical to Acquire CBD Firm Sera Labs in USD 20m Deal
Friday 31 July 2020

US-based CBD health and wellness company Sera Labs has entered an MOU for a 100% acquisition by drug delivery and development company Cure Pharmaceutical (OTC: CURR) for a total up-front consideration of USD 20m, the company said.

This consists of USD 19m in Cure stock at a valuation of USD 2.75 per share, and USD 1m in cash, with an initial, additional commitment of USD 4m for working capital in support of accelerating Sera Labs' growth.

The transaction also includes the potential for an earn out of up to USD 20m in CURE stock at a valuation of USD 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 USD 1.8m, reflecting a steep sales growth trajectory and early strong reception for its novel products across the CBD-based beauty, health and wellness, and pet product markets.

Cure Pharmaceutical is the developer of CUREform, a patented drug delivery platform that offers a number of unique immediate- and controlled-release drug delivery vehicles designed to improve drug efficacy, safety, and patient experience for a wide range of active ingredients.
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Date Published: 31/07/2020

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