Revenue and losses both up at Cure Pharmaceutical
Oxnard-based Cure Pharmaceutical, a drug delivery platform and CBD products company, reported more losses but rising revenue in its second quarter earnings.
Cure suffered a net loss of $9.6 million in the second quarter of 2022, up substantially from a net loss of $1.3 million in the same quarter a year ago. That equates to an earnings per share loss of 10 cents for the quarter ended June 30.
Revenue increased 31% in the quarter, however, to $1.3 million, with more expected growth to come in the third quarter, the company said in a news release.
Cure released its second quarter earnings the morning of Sept. 1. Shares climbed 3.3% that day to close at 28 cents. They opened Sept. 6 at 26 cents.
The big thing Cure accomplished in the second quarter was the selling a portion of its intellectual property and related assets for $20 million, which the company announced July 28. The company also retained 15 of its patents.
The $20 million came in the form of $4.15 million in debt forgiveness, a $2 million secured loan and the remaining $13.85 million in cash. The buyer was a company called TF Tech Ventures.
Cure said some of the proceeds from the sale would go toward paying down its debt and growing its intellectual property portfolio in its wellness and beauty brands.
After the deal, Cure replaced its CEO, Robert Davidson, who remains on the board. The new CEO is Nancy Duitch, who is also the CEO of the Cure subsidiary Sera Labs, a CBD wellness and beauty brand.
Cure’s CFO, Michael Redard, also stepped down and was replaced by Joel Bennett, Sera Labs’ CFO.
“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,” Duitch said in a company statement. “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.”
She added that administrative costs have fallen $3.4 million in the first half of 2022, a priority for the company going forward.
Cure trades on an over-the-counter marketplace. Its shares have not closed at over $1 since March 2021 and are down 95% from their peak of $5.20 in July 2019.