Cure Pharmaceutical, an Oxnard cannabis products manufacturer, has completed its $20 million cash-and-stock buyout of the CBD company Sera Labs, a deal Cure says will help it reach positive cash flow in around 18 months.

Cure’s stock, which is traded on the over-the-counter markets, fell 3 percent following the announcement, closing at $1.29 per share on Sept. 24, down 57 percent since the start of the year. In addition to $1 million in cash, the deal valued Cure stock at $2.75 per share, Cure said. 

Another $4 million has been allocated to Sera for working capital, and the deal includes $20 million in potential stock options at $3.34 per share if it hits performance goals. 

“Our acquisition of Sera Labs has been validated over the last few months as we have seen a strong cultural fit and expanded opportunities including a pivot to tele-wellness through which we will deliver to consumers science-based products that meet their personalized wellness objectives,” Cure CEO Rob Davidson said in a news release. 

Sera Labs is based in Maine and was founded in 2018 by CEO Nancy Duitch, who will continue to head up the company and take on the role of chief strategic officer for Cure’s Wellness Division. It produces some 20 beauty, health and pet products using CBD, a non-psychoactive component of cannabis, and reported $1.8 million in net sales for the quarter ended June 30.

Cure is licensed by the U.S. Food and Drug Administration to produce cannabis products for the wellness, pharmaceutical and cosmetics markets. Its products include thin-film strips, topical creams and an emulsion technology that can be used for films, tinctures, beverages and other delivery systems.

The deal gives Cure access to Sera’s retail and direct-to-consumer sales channels, Cure said. Sera products could also use Cure’s thin-film technology. 

“Consumers will soon have access to Cure’s proprietary formulations under the Sera Labs brand in the coming weeks,” Davidson said.