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CURE Pharmaceutical Letter to Shareholders

Thursday, 15 December 2022 09:00 AM

Investment in New Marketing Strategies Showing Encouraging Early Results

Enhanced Instagram & Media campaigns featuring Nicole Kidman highlighting Seratopical Revolution

Incubator Strategy Initiated with New Market Disruptor Products arriving 1H2023

SHERMAN OAKS, CA / ACCESSWIRE / December 15, 2022 / CURE Pharmaceutical Holding Corp. (OTCQB:CURR) CEO Nancy Duitch is providing an update to its shareholders on positive recent developments in the evolution and progress of the Company.

Dear Shareholders:

We would like to thank all of you for your continued support during this exciting time in our company's history. We also want to share some of the progress we have made in the short period of time since the asset sale at the end of July 2022 which allowed us to invest in the Company's transformational products and innovative marketing campaigns. We have been very busy executing on our strategy which we believe will increase shareholder value.

CURE's new business model is now focused on ‘The Future of Innovative Wellness' utilizing our broad platform technologies. The new and exciting delivery system technologies we are creating in the surging wellness and beauty markets position us well for accelerating sales of our very high margin innovative products. Technology and innovation along with our team's execution will help to distinguish Cure in the marketplace.

The Company's short and long-term growth strategy is to increase revenue with high margin products. We will do this by using our incubator strategy to grow the patent and product portfolios. Additionally, we will monetize the patented technology through multiple revenue streams including strategic partnerships and transactions. These initiatives, along with the Company's relationships with Nicole Kidman and other major social media influencers, will also help propel its wellness and beauty brands to become household names and to become a house of respected and recognizable quality brands.

The Value Proposition of the Company is supported by these pillars:

  1. Technology - Providing innovative wellness solutions to fill current market gaps by ordinary supplement delivery systems.
  2. Strong Patent Portfolio - Portfolio of over 15 critical patents, issued and pending. Monetize owned IP through licensing/asset sale of the technology while developing new proprietary patents.
  3. Established Network - A trusted and reliable brand that is recognized for quality and commitment to its customers.
  4. Growth Plans - Multiple strategies that will be used to expand patents and product offerings, improve cash flow and ensure profitability to include, strategic non-dilutive transactions, geographic licensing, mergers or acquisitions and joint venture partnerships.
  5. Management Expertise - The team has several decades of experience in the wellness and beauty sectors utilizing innovative products with cutting-edge intellectual property.

Supporting the strategic direction of the Company, the research firm of McKinsey & Company has estimated consumer spending on wellness products and services to be more than $450 billion in the United States, and growing at more than 5 percent annually, with global sales topping $1.5 trillion. They stated: "Consumers are eager to find solutions that work. The companies that thrive will be those that can identify and target unmet needs through offerings that are thoughtful, differentiated, tailored, and - increasingly - that target multiple dimensions of wellness."

Along with the wellness market place the Company is also heavily involved in the beauty industry which exceeds $530 billion in the U.S. alone. This is an arena in which the Company has excelled in the past and will continue to grow due to our branding and marketing expertise with a multi-channel Return on Investment advertising strategy. We are very proud of the unique and cutting-edge delivery system technologies which differentiate our products from those of other companies, and that is allowing us to grow with a limited amount of competition. We recently completed our new Seralabshealth.com website which is very user friendly and is showing huge improvement in conversions which leads to increased sales.

We also recently hired Rick Petry who is one of the most renowned writers and direct marketers. In addition, we brought in Tracy Jankowski as our Vice President of Digital Marketing who is an expert in women's products and who has turned around our digital marketing and branding strategies in just seven short weeks upgrading our internal team without adding additional G&A expense.

We have worked at warp speed on building out our technology and product development as well as our A-plus team the past four months. Thus, giving us a jump start for Q1 2023. Most importantly, our high gross margin products are priced so they are affordable for everyone in these tough economic times. There is an interesting WSJ article called the "Lipstick Index" which outlines what consumers look for during these times: affordable products that make consumers feel better about themselves which falls into our categories and price points.

Link to WSJ article: https://www.wsj.com/articles/the-lipstick-index-is-back-11669256641?st=phgh12u9x1q58wg&reflink=desktopwebshare_permalink

As we have previously reported, other important company developments already include strong sales results and revenue growth. Plus, we completed sale of a portion of our platform technology intellectual property portfolio 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 is being used for working capital and 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, which it intends to monetize through the commercialization of the technologies through product development or through the licensing/sale of the technologies.

CURE'S wholly owned subsidiary, The Sera Labs, also announced that six SKUs of its Seratopical Revolution skincare line with P3P, our proprietary delivery system, are now being sold at over 1,372 Walmart Stores as well as on Amazon.com.

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.

We are also fortunate to have enhanced engagement of our Brand Ambassador, award winning actress Nicole Kidman who has steadfastly been so supportive in product development and continues to help us with posting, videos, and PR (including her current series of Instagram posts for the holidays highlighted in Daily Mail Article linked below) which together with our quality products builds consumer awareness and trust. We have recently enhanced the reach and visibility of Nicole as part of the launch of our new transformational Seratopical Revolution campaign and the unveiling of our cutting-edge new delivery system for our plant-based skincare line. Nicole Kidman and I will have more prominence in these multi-faceted marketing programs including recent articles like the ones Daily Mail, Forbes and Impact Wealth. To view the articles, click on the following links:

Daily Mail Dec 12, 2022, Nicole Kidman reveals the secret to her age-defying skin

Forbes Oct 31, 2022 - Nicole Kidman Talks Skincare-And The Beauty Essentials She Always Has In Her Bag

Impact Wealth Oct 31, 2022 - The Powerful Impact of Beauty Market Revealed by CEO Nancy Duitch

Recent key operational highlights included the following:

Revenue in the third quarter surged 32.1% year-over-year and 58.9% sequentially from Q2 2022 to $1.8 million with further increases expected in Q4.

Gross margins for the third quarter improved by 123 basis points to 80.0% in 2022 compared to the same period in 2021 with expectations of continuing high margin sales with our new marketing initiatives.

SG&A expenses (excluding non-cash charges) for the third quarter decreased by $0.1 million in 2022 compared to 2021.

Cost reductions and operating leverage helped narrow operating loss (excluding non-cash charges) by $0.6 million in 2022 versus 2021 despite enhanced marketing investment.

We are very pleased with the direction of our operating results and accelerating sales in the third quarter which reflect the improving trajectory of the business. The proceeds from the recent asset sale will enable us to invest in the future of the Company. Our margin expansion initiatives continue to deliver results, and we are continuing our efforts to reduce SG&A expenses. We are also very excited about the launches of the advertising and marketing campaigns for our Nutri-Strips and Seratopical Revolution lines. And get ready for the launch of our exciting market disruptors developed by our team of formulators led by Rob Davidson, our Chairman and Chief Technical Officer, in the first half of 2023 which look very promising for the Company.

Sincerely,

Nancy Duitch, CEO
CURE Pharmaceutical Holding Corp.

CURE Pharmaceutical Holding Corp.

CURE Pharmaceutical is a broad platform technology company that develops proprietary 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 consumer experience for a wide range of active ingredients. The Company will continue down the path of creating new innovative technology that is 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™. Sera Labs sells its products at affordable prices, making them easily accessible on a global scale and is strategically positioned to grow its 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 and mass retailers. For more information visit: Seratopicalrevolution.com, Seratopical.com, Seralabshealth.com and follow Sera Labs on Instagram at @seratopical, as well as on 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.

Contacts:

Investor Relations
Hanover International Inc.
(760) 564-7400
[email protected]

SOURCE: CURE Pharmaceutical Holding Corp.

Topic:
Company Update
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