Jeffs’ Brands Entered into a Definitive Agreement to Acquire a 49% interest in a company that Owns Wellution, a Top Seller Brand on Amazon for $2.5 million
Feb 23rd, 2023 8:45 EST
The food supplements and cosmetics brand is profitable with millions of dollars in gross annual sales
Tel Aviv, Israel, Feb. 23, 2023 (GLOBE NEWSWIRE) -- Jeffs' Brands Ltd (the “Company” or “Jeffs’ Brands”) (Nasdaq: JFBR), a data-driven e-commerce company operating on the Amazon Marketplace, today announced that it has entered into a definitive agreement (the “Agreement”) with SciSparc Ltd. (“SciSparc”) (Nasdaq: SPRC), to purchase from it approximately 49% of the outstanding capital stock of SciSparc Nutraceuticals Inc. (the “Subsidiary”), a wholly-owned subsidiary of SciSparc that owns WellutionTM, a top-selling Amazon.com Marketplace food supplements and cosmetics brand (the “Brand”), for $2.5 million in cash. The stock interest of Jeffs’ Brands in the Subsidiary is expected to be held by a wholly-owned Delaware subsidiary of Jeffs’ Brands. In addition, the Agreement also includes a mutual share exchange between SciSparc and the Company of restricted shares (the “Share”), in the total amount of $300,000. The number of shares in the share exchange will be calculated based on the average closing price of the relevant company’s shares for 30 consecutive trading days ending on the third trading day immediately prior to closing the transaction. The closing of the transaction is subject to certain customary conditions and is expected to be completed within seven business days. At closing, the Company and the Subsidiary will enter into a consulting agreement by which the Company will provide management services for the Brand for a monthly fee of $20,000. The agreement is for an undefined period of time, and may be terminated by either party with 30-days’ advance notice.
The Brand is profitable with millions of dollars in gross annual sales on the Amazon market place.
The Brand sells dozens of hemp-based, top-ranked products, including hemp gummies, hemp oil capsules, hemp gel, hemp cream, detox pills, height pills, antibacterial creams, and anti-aging creams, among other beauty and hair treatment products that are all manufactured in the United States.
The Brand offers eight variations of natural hemp candy supplements under two parent Amazon Standard Identification Number (each, an “ASIN”) on Amazon that are differentiated by their hemp oil potency. The leading parent ASIN, that was launched in 2019, has received over 26,500 reviews and has consistently ranked as the #1 best seller in the category. In total, the Brand had approximately 40,000 product reviews to date, most of which are 4 and 5-star reviews.
Mr. Oz Adler, the Chairman and a director of the Company is the Chief Executive Officer and Chief Financial Officer of SciSparc, Mr. Amitai Weiss, the Chairman of SciSparc, is a director of Jeff’s Brands, and Mr. Moshe Revach is a member of the board of directors of the Company and SciSparc.
The Shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any states' securities laws and may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act.
About Jeffs’ Brands Ltd
Jeffs' Brands is transforming the world of e-commerce by creating and acquiring products and turning them into market leaders, tapping into vast, unrealized growth potential. Through our stellar team’s insight into the FBA Amazon business model, we’re using both human capability and advanced technology to take products to the next level. For more information on Jeffs’ Brands Ltd visit https://jeffsbrands.com.
About SciSparc Ltd.
SciSparc Ltd. is a specialty clinical-stage pharmaceutical company led by an experienced team of senior executives and scientists. SciSparc’s focus is on creating and enhancing a portfolio of technologies and assets based on cannabinoid pharmaceuticals. With this focus, the Company is currently engaged in the following drug development programs based on THC and/or non-psychoactive cannabidiol (CBD): SCI-110 for the treatment of Tourette Syndrome, for the treatment of Alzheimer's disease and agitation; SCI-160 for the treatment of pain; and SCI-210 for the treatment of autism spectrum disorder and status epilepticus.
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