Canadian health and wellness company Pure to Pure Beauty Inc (CSE: PPB, FRA: 3QG0, WKN: A3CTLX) has formally entered into a share purchase agreement to acquire a majority stake in UK-based SunSeal International from owner Corium Health.
As per the agreement, Pure to Pure will purchase 51% of SunSeal by issuing 5 million common shares and providing CAD$75,000 in cash. Additionally, there will be an earn-out and performance payment arrangement as well as a purchaser option agreement with Corium. These agreements will allow Corium to receive an extra CAD$75,000 in cash, along with performance-based payments of up to CAD$1 million in cash or shares, based on SunSeal’s cumulative revenue and EBITA by June 2025.
The purchaser option agreement also grants Pure to Pure the option to acquire an additional 29% interest in SunSeal for an additional $300,000 in cash or shares.
The completion of the SunSeal acquisition is contingent upon various conditions, including the appointment of a Corium director to the Pure to Pure board, the establishment of manufacturing, distribution, and supply agreements for SunSeal products, the listing of Pure to Pure shares on the Frankfurt Stock Exchange, meeting a minimum working capital requirement of $450,000, and obtaining all necessary approvals.
Pure to Pure’s Chief Executive Officer, Simon Cheng, expressed enthusiasm for the strategic move, stating that the acquisition will bolster the company’s position in the suncare industry and create synergies with their existing product portfolio. Cheng emphasized that this acquisition aligns with Pure to Pure’s goal to expand its range of health and wellness offerings and looks forward to collaborating with Corium to further develop SunSeal products.
SunSeal specializes in sunscreen products utilizing patented Microskin technology, which is water-resistant and has shown to maintain 93% effectiveness even after being submerged in water for seven days. The brand has received approval from the Australian Therapeutic Goods Administration (TGA) and is authorized for use in the UK and throughout the EU, with an application underway for approval by the Food and Drug Administration in the US.
