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CURE Pharmaceutical to Acquire Sera Labs in USD 20m Stock and Cash Transaction
Monday 03 August 2020

US drug delivery and development company CURE Pharmaceutical (OTC: CURR), has entered into a Memorandum of Understanding to acquire 100% of CBD company Sera Labs for a total up-front consideration of USD 20m in stock and cash, the company said

The consideration is comprised 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.

The acquisition of Sera Labs will add to CURE a growing brand portfolio and monetisation platform that fits with CURE's development capabilities, products, and existing market verticals.

Sera Labs is in the health, wellness and beauty sectors of CBD. Sera Labs creates products that use science-backed, proprietary formulations and organic hemp.

CURE Pharmaceutical Holding Corp. is the pioneering 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.
Date Published: 03/08/2020