CCA Industries, Inc. Announces Acquisition of Hair Off and Solar Sense Trademarks
LYNDHURST, N.J., Feb. 14, 2020 /PRNewswire/ -- CCA Industries, Inc. (OTC: "CAWW"), announced today that it purchased the Hair Off trademark and related intellectual property from Inspired Beauty Brands, Inc. ("Licensor"), and purchased the Solar Sense trademark and related intellectual property from K.E.L.K. Corp.
Lance Funston, Chairman of the Board, commented, "The Hair Off brand provides CCA with a wax based facial and body hair removal system which is very complementary to our Bikini Zone depilatory line of products. We indicated in our press release in the fourth quarter of 2019 that we had retained the service of Cross Tree, LLC to explore strategic alternatives. Acquiring Hair Off at 1.8x gross revenue and Solar Sense at 1x average historical annual revenue made strategic sense."
Both will be marketed exclusively through ecommerce platforms providing the Company with compelling profit margins.
The purchase of the Hair Off trademark and related intellectual property was completed in December 2019, with a payment of $500,000 to the Licensor. The Company had been licensing the Hair Off trademark since March 1986. The license agreement would have expired on November 30, 2022. In the year ended November 30, 2019, the Hair Off brand had gross sales of $275,518. The Company paid royalties of 10% of gross sales.
The purchase of the Solar Sense trademark took place in January. The agreement provided for the payment of $625,000 in cash and the issuance of 155,000 shares of preferred stock. The Company acquired all rights to the Solar Sense trademark in the transaction. The Company had licensed the Solar Sense trademark since 1998. Solar Sense has a 50-year history and is uniquely positioned in the "all natural" zinc sector.
Lance Funston, Chief Executive Officer commented, "The purchase of Hair Off and Solar Sense will enable the Company to invest in building the brands as part of the firm's digital initiative. The Company has had a long history with the Solar Sense brand, which we believe has great value in the marketplace. We will be working to reintroduce the brand in the second half of fiscal 2020."
Statements contained in the news release that are not historical facts are forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which would cause actual results to differ materially, from estimated results. Such risks and uncertainties are detailed in the Company's past filings with the Securities and Exchange Commission. No assurance can be given that the results in any forward-looking statement will be achieved and actual results could be affected by one or more factors, which could cause them to differ materially. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act.
SOURCE CCA Industries, Inc.
Released February 14, 2020