“The company’s return to profitability is due to the restructuring plan which was completed in the third quarter of fiscal 2016,” said CEO Lance Funston. “This has put the company on a more stable platform enabling us to now turn our attention to increasing top line sales through the introduction of new products and expansion of retailer distribution.”
In other news, CCA Industries has approved a license agreement for the global marketing rights for the Porcelana brand from Ultimark Products, LLC, which is based in Philadelphia. Porcelana is an established skin lightening product.
Ultimark is controlled by Funston, who is also the chairman of the board and CEO of CCA Industries, Inc. The brand was acquired by Ultimark in 2011. In 2016, annual gross sales exceeded $1.9 million for this mass market skin care collection. The licensing agreement calls for a 10% royalty on gross sales and includes a one-year option to purchase the brand for $3.2 million, subject to a fairness opinion.