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Pure to Pure Beauty to buy majority interest in SunSeal International

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By Imelda Cotton - 
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Canadian health and wellness company Pure to Pure Beauty Inc (CSE: PPB, FRA: 3QG0, WKN: A3CTLX) has signed a definitive share purchase agreement to acquire a majority interest in UK-based SunSeal International from owner Corium Health.

Under the terms of the deal, Pure to Pure will acquire 51% of SunSeal in consideration for 5 million common shares and CAD$75,000 cash.

It will also enter into an earn-out and performance payment agreement and a purchaser option agreement with Corium which will entitle Corium to receive an additional CAD$75,000 in cash plus performance payments of up to CAD$1 million cash or shares based on SunSeal’s cumulative revenue and EBITA (earnings before interest, taxation and amortisation) by June 2025.

The purchaser option agreement will entitle Pure to Pure to acquire a further 29% interest in SunSeal for an additional $300,000 in cash or shares.

The acquisition of SunSeal is subject to a number of conditions including the appointment of a Corium director to the board of Pure to Pure; the establishment of manufacturing, distribution and supply agreements for SunSeal’s products; listing of Pure to Pure’s shares on the Frankfurt Stock Exchange; Pure to Pure having a minimum working capital of $450,000; and the receipt of all necessary approvals.

‘Good strategic move’

Pure to Pure chief executive officer Simon Cheng said the acquisition would be a good strategic move.

“We expect it will provide us with a strong market position in the suncare industry, and SunSeal products have a number of synergies with our existing portfolio,” he stated.

“This acquisition aligns with our strategy to expand our portfolio of health and wellness products and we look forward to working with Corium in the further development of SunSeal products.”

Microskin technology

SunSeal develops sunscreen products using patented Microskin technology which is not absorbed into the skin and has been shown to remain 93% effective after being submerged in water for seven days.

The brand has received approval from the Australian Therapeutic Goods Administration (TGA) and has been approved for use in the UK and across the EU.

An application is currently being prepared for Food and Drug Administration approval in the US.