Balance Sheet and Governance Strengthened with Asset Sale and Board Appointments
New Marketing Programs Showing Encouraging Early Results
OXNARD, Calif., Sept. 02, 2022 (GLOBE NEWSWIRE) -- CURE Pharmaceutical Holding Corp. (OTC: CURR) (“CURE”), a proprietary broad platform and wellness technology company, today announced results for the quarter ended June 30, 2022.
Key operational highlights included the following:
Gross revenue of $1.6 million reflected an increase of 31.2% from Q1 to Q2 with further acceleration expected in Q3 and Q4.
Gross margins increased and we expect the high margin sales to accelerate with our new marketing initiatives.
SG&A expenses (excluding stock-based compensation) decreased by $3.4 million in the first half of 2022.
Cost reductions and operating leverage helped narrow operating loss by $1.0 million in 2022 (excluding non-cash stock valuation benefit in 2021), even before the July asset sale that will reduce our ongoing cash burn further.
Other operational highlights during the second quarter of 2022 and subsequent weeks included:
CURE announced that it sold a portion of its platform technology intellectual property and related assets in July 2022 for $20 million of non-dilutive capital in total consideration. A portion of the cash proceeds was used to pay down certain debt obligations and the balance will be used to grow the Company’s intellectual property portfolio and its wellness and beauty brands. The Company retained 15 of its patents and will continue to be an incubator for future technologies and patents. In addition, CURE intends to monetize the patents through the commercialization of the technology or through the licensing or sale of the technology.
CURE’s wholly-owned subsidiary The Sera Labs, also announced that four SKUs of its Seratopical Revolution skincare line with P3P, the proprietary delivery system, is now being sold at 1,372 Walmart Stores. Distribution in Walmart will be increasing to 1,800 stores in September with two additional items bringing the total to six SKU’s.
Sera Labs also has garnered placement for its revolutionary oral thin film strip, Nutri-Strips™ on shelves at CVS, Amazon.com and Target.com. Nutri-Strips are proprietary to Sera Labs and are the result of years of research.
CURE announced positive findings from a study conducted at Cincinnati Children’s Hospital Medical Center (CCHMC) using CURE’s proprietary, single dose, oral, 40,000 IU vitamin D (branded ImmunD3™ Nutri-Strips™ in the retail wellness market) in pediatric patients before stem cell therapy. CURE’s oral vitamin D supplement was found to be more effective than standard supplementation in achieving pre- and post-surgery vitamin D sufficiency, which is critical for reducing immune-mediated organ damage in the children receiving HSCT.
“I couldn’t be more pleased that the Company received the capital from the asset sale the last week in July, which will enable us to finally achieve our revenue and strategic goals within the next year. We are seeing positive results from our new marketing initiatives with increasing sales trends in the first six weeks of Q3 as we work to increase our revenues significantly in the second half and should see an additional acceleration in Q4. During Q2 we worked on successfully increasing our gross margins, while we continually work to decrease the SG&A. In anticipation of receipt of the non-dilutive capital, the team began working on the strategy to renew our advertising and marketing campaigns with Nutri-Strips and Seratopical Revolution lines, both of which have Cure’s proprietary delivery system technologies. I look forward to additional non-dilutive capital infusions and am very excited about the new technologies Rob Davidson and his team are working on for the Company,” says Nancy Duitch, Cure Pharmaceutical, CEO
Board and Governance Update
On August 2, 2022, CURE announced the appointment of Gerald Bagg to its Board of Directors. This strategic addition adds depth to CPG and advertising. A 45+ year veteran of the advertising industry, Gerald is best known for pioneering the BRAND RESPONSE advertising approach to campaigns. He is the Chairman and a co-founder of Quigley-Simpson Inc., a more than twenty-year-old full-service advertising agency specializing in strategic planning, marketing, media planning and buying, brand building, creative development, and production.
On August 16, 2022, the Company announced the appointment of former CEO Rob Davidson as Chairman of its Board of Directors. In addition, the Company announced the appointment of Robert J. Costantino to its Board of Directors and he has also been appointed as Chairman of CURE’s Audit Committee. Rob Davidson brings a deep understanding of the CURE pipeline and provides expertise in continued new product development, patent creation, and continuity in non-dilutive ongoing deal transactions as well as years of public company experience. Rob Costantino brings a unique combination of decades of financial expertise, investing experience and shareholder advocacy, operational experience, and many years of negotiating success in closing multi-billion-dollar total company and asset sales to S&P 500 companies.
Shareholder Value and Communication and Upcoming Investor Events
With increasing shareholder value being a primary focus, the Company is continuing to work on additional initiatives to enhance shareholder value and is committed to increased visibility and shareholder communications. Management is scheduled to attend and hold one-on-one meetings with investors at the following conferences with more to follow:
- September 8th - National Investment Banking Association investor conference in Hollywood, Florida - Chairman, CEO, and CFO will be presenting and will be available for one-on-one meetings with investors.
- September 22nd - Jefferies Innovation in Mental Health - Psychedelics Summit in New York City. Chairman will be attending and meeting with potential business development partners for its Psychedelic Oral Film Program and will be holding one-on-one meetings with investors. More than a dozen other companies in the field of psychedelics, psychedelic-assisted therapies and an FDA expert will also be participating.
- October 25th - Main Event XV LD Micro Small Cap Conference in Los Angeles. Chairman, CEO and Audit Committee Chairman will be available for one-on-one meetings with investors. The presentation will also be available to investors virtually.
In conclusion, the recent $20 million asset sale has helped us increase our cash position and strengthen our balance sheet. We are making progress on additional non-dilutive funding transactions and other initiatives that we expect will further enhance both of these areas. Our new marketing programs are showing early encouraging results, as we continue to focus heavily on accelerating our high margin sales. We continue to work on new products and patents. We have strengthened our Board of Directors with recent appointments and anticipate announcing additional Board appointments in the coming months. We are committed to increasing our shareholder communication and will have shareholder value as a primary focus.
For further details please visit CURE’s website under SEC filings to review its 10-Q filed September 2, 2022: www.curepharmaceutical.com/investors/sec-filings/
About CURE Pharmaceutical Holding Corp.
CURE Pharmaceutical® is a broad platform technology company that develops proprietary drug, nutraceutical and topical delivery systems and currently holds fifteen patents. The technology offers a number of unique immediate- and controlled-release delivery vehicles designed to improve product efficacy, safety, and patient/consumer experience for a wide range of active ingredients. The Company will continue down the path creating new innovative technology that will be part of its incubator strategy.
About The Sera Labs, Inc.
The Sera Labs, Inc. (“Sera Labs”), a wholly owned subsidiary of CURE, is a trusted leader in the wellness, and beauty sectors utilizing cutting edge technology and high-quality products that use science-backed, proprietary formulations. More than 25 products are sold under the brand names Seratopical™, Seratopical Revolution™ SeraLabs™, and Nutri-Strips™. The Company sells its products at affordable prices, making them easily accessible on a global scale and is strategically positioned to grow their beauty and wellness products into household brands. Sera Labs products are sold Direct to Consumer with a subscribe and save option, as well as in major national drug, grocery chains, and mass retailers. For more information visit: Seratopicalrevolution.com, Seratopical.com, Seralabshealth.com and follow Sera Labs on Instagram at @seratopical, as well as Twitter and Facebook.
Forward Looking Statement
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the future growth and success of our organization. We have attempted to identify forward-looking statements by using words such as “anticipate,” “believe,” “could,” “estimate,” “expected,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” or “would,” and similar expressions or the negative of these expressions.
Forward-looking statements represent our management’s current expectations and predictions about trends affecting our business and industry and are based on information available as of the time such statements are made. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as well as in our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable law, we expressly disclaim any intent or obligation to update any forward-looking statements, or to update the reasons actual results could differ materially from those expressed or implied by these forward-looking statements, whether to conform such statements to actual results or changes in our expectations, or as a result of the availability of new information.
Hanover International Inc.
psychedelics psychedelic cure pharmaceutical