Cure Pharmaceutical, an Oxnard company with a CBD products subsidiary, reported steep revenue growth but rising net losses in the fourth quarter and full year of 2020.
In an annual statement released April 1, Cure reported revenue of $2.1 million in the final quarter of 2020, up 229% from the same quarter a year before. Despite that, CURE reported a net loss of $18.9 million in the fourth quarter, up from a net loss of $13.6 million in the same quarter of 2019.
For the full year, Cure’s revenues were up from $3 million in 2019 to $7.7 million in 2020. Gross profit increased from $400,000 in 2019 to $1 million in 2020.
Net losses were also up, however, from $21.3 million in 2019 to $30.6 million in 2020.
Both the revenue growth and the losses could be attributed to the company’s acquisition of the CBD oil and products company Sera Labs, which accounted for about half of Cure’s 2020 revenue despite only being part of the company for the last three months of the year.
Cure’s acquisition of Sera closed Oct. 2, 2020, according to Cure’s filing with the U.S. Securities and Exchanges Commission. Cure paid an upfront fee of $20 million to acquire the company.
The fee was paid with $1 million in cash and $19 million in Cure shares at $2.75 apiece, according to the filing. Cure, which trades on an over-the-counter marketplace as CURR, closed at 95 cents per share on April 1.
“We made great progress in 2020 and are now well positioned to become a fully integrated healthcare company, as propelled by the acquisition of Sera Labs. We have more than doubled our revenue in 2020, mostly through our wellness subsidiary Sera Labs,” Cure CEO Rob Davidson said in a news release that accompanied the SEC filing.
In addition to Sera Labs, Cure has developed a dissolvable oral film for use as a delivery system for cannabis medications and other drugs.