California-based CURE Pharmaceutical offered $20 million to acquire Sera Labs, which makes CBD cosmetics and pet products.
In its announcement, CURE said it had agreed to purchase 100% of the privately held Los Angeles company for $20 million.
The offer consisted of $19 million in CURE shares and $1 million cash to support Sera Labs' growth.
CURE CEO Rob Davidson said Sera Labs would fit well with the company's development capabilities, products and existing market.
Sera Labs sells products through grocery chains and mass retailers, under private labels for major retailers, and directly to consumers through online orders.
Under the proposed acquisition, founder and CEO Nancy Duitch would remain CEO, and the entire existing Sera line would move to CURE's manufacturing facility.
