Canadian health and wellness company Pure to Pure Beauty Inc (CSE: PPB) has announced its intention to acquire a 51% stake in the “SunSeal by Microskin” brand of products from cosmetics vendor Corium Health.
This strategic move is expected to enhance Pure to Pure’s presence in the sun care market and create synergies with its existing product portfolio. According to the terms outlined in a letter of intent between the two companies, Pure to Pure will purchase a 51% share of a Corium subsidiary holding the SunSeal assets in exchange for 5 million ordinary shares and performance-based payments tied to the subsidiary’s revenue and EBITDA.
As part of the agreement, Corium and Pure to Pure will collaborate to further expand the SunSeal business, with Corium retaining the right to appoint a director to Pure to Pure’s board. In addition, a call option will be included in the definitive agreement, allowing Pure to Pure the opportunity to acquire an additional 29% of the subsidiary for an extra $300,000 consideration.
All shares issued by Pure to Pure in connection with the acquisition will be subject to a six-month pooling arrangement, aimed at incentivizing Corium to contribute to the success of the venture.
SunSeal, developed by Corium, offers advanced sunscreen protection by creating a “simulated second skin” that lasts for up to three days. The patented technology provides protection against both UVB rays, which cause sunburn, and UVA rays, which contribute to premature aging. SunSeal is promoted as non-absorptive, breathable, and fully waterproof, with testing conducted by a leading sunscreen formulation laboratory in Sydney demonstrating 93% efficacy even after prolonged water exposure.
The product has received approval from the Australian Therapeutic Goods Administration and is also authorized for use in the UK and across the European Union, with an application pending for approval by the US Food and Drug Administration.
