OXNARD, Calif. — CURE Pharmaceutical announced Tuesday that it has entered into a “Memorandum of Understanding” to acquire 100% of privately held CBD company Sera Labs. The transaction is expected to close, subject to a definitive agreement and customary closing conditions, by the fourth quarter of 2020.
“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.”
BDS Analytics and Arcview Market Research estimate that the U.S. market for hemp-derived CBD products will exceed $20 billion by 2024, representing a 5-year compound annual growth rate of 49 percent. Since the consumer penetration for hemp-derived CBD products in the U.S. is still only 15 percent today, analysts believe a substantial growth market exists, particularly in the area of ingestibles and topicals.
“Sera Labs has quickly become a standout leader in the CBD industry,” said Nancy Duitch, founder and CEO of Sera Labs. “We attribute our success to capturing a broad distribution network that serves major retailers/distributors and consumers with solution-oriented products and value-driven, trusted brands. The Sera Labs team consists of highly experienced experts who have a track record of creating multiple national brands by utilizing direct-to-consumer marketing to generate recurring revenue. The Sera Labs team has built brands that have generated more than $5 billion in retail sales during the course of their combined careers. We are most excited about the opportunity to vertically integrate with CURE’s domestic cGMP manufacturing and distribution, which will result in a streamlined supply chain. We are confident that with the novel and patented formulation technologies and know-how of CURE, we will be able to accelerate sales growth and achieve consistent profitability much more rapidly than could have been achieved on our own.”