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CCA Industries, Inc. Announces the Sale of Bikini Zone Brand
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Positive)
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Rhea-AI Summary
CCA Industries, Inc. has sold its Bikini Zone brand to NFI, LLC for $2,500,000 plus inventory at cost ($243,000). The proceeds will be used to pay off the outstanding line of credit balance ($1,241,000) and for working capital purposes. Internet-based sales in the first nine months of 2023 were over $4.7 million, a 42% increase compared to the same period in fiscal 2022. The company plans to increase internet advertising and focus on high-gross-margin brands to improve profitability.
Positive
Sale of Bikini Zone brand for $2,500,000 plus inventory at cost. Increased internet-based sales by 42% in the first nine months of 2023. Plans to increase internet advertising and focus on high-gross-margin brands.
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FORT WASHINGTON, PA / ACCESSWIRE / October 2, 2023 / CCA Industries, Inc. (OTC Pink:CAWW) has sold its Bikini Zone brand to NFI, LLC effective October 1, 2023. The brand was sold for $2,500,000 plus inventory at cost for an estimated $243,000 and includes all intellectual property pertaining to the Bikini Zone brand. The Company will be using the proceeds to pay off its outstanding line of credit balance of approximately $1,241,000 with the balance to be used for working capital purposes. The Company plans on maintaining the available line of credit. Christopher Dominello, the Company's Chief Executive Officer commented, "This is a good step forward for CCA to recover from the losses of the past few years. We plan on using some of the proceeds to increase our internet advertising which has proven effective. The internet-based sales in the first nine months of 2023 were over $4.7 million compared to approximately $3.3 million for the same period in fiscal 2022, an increase of over 42%. We anticipate having continued growth in this sales channel. We are also taking additional steps to improve profitability including reducing packaging costs and having a greater focus on our brands that have a high gross margin. We believe that the sale of Bikini Zone gives us the working capital flexibility to achieve the goal of returning the Company to profitability and bringing value to the shareholders."
About CCA Industries Inc.
CCA Industries, Inc. manufactures and markets health and beauty aids, each under its individual brand name. The products include, principally, "Plus White" toothpastes and teeth whiteners, "Nutra Nail" nail care treatments, "Porcelana" skin care products, "Scar Zone" scar treatment products, "Sudden Change" anti-aging skin care products, "Hair Off" depilatory products, "Solar Sense" sun care products and "Neutein" brain health supplements which the Company licensed in January 2022.
