Jeffs’ Brands Enters Strategic Sale Agreement for Future Growth

Strategic Expansion Plan by Jeffs’ Brands Ltd

Jeffs’ Brands Ltd (“Jeffs’ Brands” or the “Company”) is taking an important step towards growth and development by entering into a non-binding Letter of Intent (LOI) to sell its U.S. subsidiary, Smart Repair Pro. This transaction is valued at approximately $13.125 million and is expected to pave the way for improved opportunities and sharper market focus.

Details of the Proposed Sale

As part of the agreement announced recently, Jeffs’ Brands will transfer all shares of Smart Repair Pro to a U.S. public company. In return, the Company will receive 75% of the Acquiring Company’s fully diluted shares at the closing of the transaction. This arrangement is designed to provide Jeffs’ Brands with a solid base as it embarks on this exciting transition.

Future Prospects and Equity Retention

Upon reaching specific milestones, Jeffs’ Brands could potentially acquire an additional 15% equity stake in the Acquiring Company. These milestones include a crucial uplisting to a national U.S. exchange within three years. With this strategic transaction, Jeffs’ Brands aims to maintain a significant ownership stake while pursuing its core objectives in the e-commerce arena.

Implications of the Transaction

This development reflects an initial valuation of about $1.5 million for the Acquiring Company. It is important to note that this figure is dependent on the success of the deferred payment linked to certain conditions, particularly maintaining cash holdings of at least $750,000. Such calculated measures suggest a prudent approach by Jeffs’ Brands to secure its interests while focusing on long-term growth.

Closing Timeline and Conditions

This transaction is projected to conclude by the end of the year, contingent upon the completion of due diligence by both parties. Additionally, it will require the execution of binding agreements that satisfy customary closing conditions, along with necessary regulatory approvals. However, as with any venture of this nature, there remains an inherent uncertainty regarding the completion of such transactions.

About Jeffs’ Brands Ltd

Jeffs’ Brands is on a mission to revolutionize e-commerce with a unique strategy centered around the Amazon Marketplace. The Company focuses on creating and acquiring products that they aim to develop into market leaders, fully tapping into available growth potential. By combining advanced technological innovations with human expertise, Jeffs’ Brands endeavors to elevate existing products and expand their market footprint considerably.

Frequently Asked Questions

What is the main goal of Jeffs’ Brands with this transaction?

The primary aim is to retain a significant ownership stake in Smart Repair Pro while enhancing the overall growth prospects and market focus of Jeffs’ Brands.

How much is the proposed sale of Smart Repair Pro worth?

The proposed sale is valued at approximately $13.125 million, which highlights the potential market value of the acquiring entity.

What will Jeffs’ Brands receive from the Acquiring Company?

Jeffs’ Brands will receive 75% of the Acquiring Company’s shares upon the closing of the transaction, with potential additional equity based on future milestones.

What conditions must be met for the sale to proceed?

The closing of the sale is subject to due diligence, the execution of binding agreements, and necessary regulatory approvals.

Who can I contact for more information about Jeffs’ Brands?

For additional information, inquiries can be directed to Michal Efraty at the Investor Relations team of Jeffs’ Brands.

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