Jeffs' Brands Enters Into a Non-Binding Letter of Intent for the Sale of its U.S. Subsidiary to a U.S. Public Company, at a valuation of approximately $13.125 million
Jeffs' Brands (JFBR) has entered into a non-binding letter of intent to sell its U.S. subsidiary, Smart Repair Pro, to a U.S. public company traded on OTC pink sheets. The deal values Smart Repair Pro at approximately $13.125 million. In exchange, Jeffs' Brands will receive 75% of the acquiring company's shares upon closing, with potential for an additional 15% stake if certain milestones are met, including uplisting to a national U.S. exchange within three years. The transaction values the acquiring company at approximately $1.5 million, contingent on minimum cash holdings of $750,000. The deal is expected to close by December 31, 2024, subject to due diligence and regulatory approvals.
Jeffs' Brands (JFBR) ha firmato una lettera di intenti non vincolante per vendere la sua sussidiaria statunitense, Smart Repair Pro, a una società pubblica americana quotata su OTC pink sheets. L'accordo valuta Smart Repair Pro a circa 13,125 milioni di dollari. In cambio, Jeffs' Brands riceverà il 75% delle azioni della società acquirente al momento della chiusura, con la possibilità di ottenere un ulteriore 15% se verranno raggiunti determinati obiettivi, inclusa l'approdo a una borsa nazionale statunitense entro tre anni. La transazione valuta la società acquirente a circa 1,5 milioni di dollari, a condizione di un deposito minimo di liquidità di 750.000 dollari. Si prevede che l'affare si chiuda entro il 31 dicembre 2024, soggetto a due diligence e approvazioni normative.
Jeffs' Brands (JFBR) ha entrado en una carta de intenciones no vinculante para vender su filial estadounidense, Smart Repair Pro, a una compañía pública de EE. UU. que cotiza en OTC pink sheets. El acuerdo valora a Smart Repair Pro en aproximadamente 13.125 millones de dólares. A cambio, Jeffs' Brands recibirá el 75% de las acciones de la empresa adquirente al cierre, con la posibilidad de un 15% adicional si se cumplen ciertos hitos, incluida la cotización en una bolsa nacional estadounidense dentro de tres años. La transacción valora a la empresa adquirente en aproximadamente 1.5 millones de dólares, condicionado a tener un mínimo de 750.000 dólares en efectivo. Se espera que el acuerdo se cierre antes del 31 de diciembre de 2024, sujeto a la debida diligencia y aprobaciones regulatorias.
제프스 브랜즈(JFBR)는 미국 자회사인 스마트 수리 프로를 OTC 핑크 시트에 상장된 미국 공기업에 판매하기 위한 비구속 의향서에 서명했습니다. 이 거래는 스마트 수리 프로의 가치를 약 1312.5만 달러로 평가합니다. 이에 따라 제프스 브랜즈는 마감 시 인수 기업의 75%의 주식을 받게 되며, 특정 이정표가 달성될 경우 추가적인 15% 지분을 받을 수 있는 가능성도 있습니다. 또한, 이는 3년 내에 미국의 주요 거래소에 상장되는 것을 포함합니다. 이 거래는 인수 기업의 가치를 약 150만 달러로 평가하며, 최소 현금 보유액이 750,000달러인 경우에 한합니다. 이 거래는 2024년 12월 31일까지 마감될 것으로 예상되며, 이는 적절한 조사 및 규제 승인을 조건으로 합니다.
Jeffs' Brands (JFBR) a signé une lettre d'intention non contraignante pour vendre sa filiale américaine, Smart Repair Pro, à une entreprise publique américaine cotée sur les OTC pink sheets. L'accord évalue Smart Repair Pro à environ 13,125 millions de dollars. En échange, Jeffs' Brands recevra 75 % des actions de l'entreprise acquéreuse au moment de la clôture, avec la possibilité d'un 15 % supplémentaire si certains objectifs sont atteints, y compris l'inscription à une bourse nationale américaine dans un délai de trois ans. La transaction valorise l'entreprise acquéreuse à environ 1,5 million de dollars, conditionnée à un minimum de liquidités de 750 000 dollars. La conclusion de l'accord est prévue d'ici le 31 décembre 2024, sous réserve de la due diligence et des approbations réglementaires.
Jeffs' Brands (JFBR) hat ein unverbindliches Schreiben über den Verkauf ihrer US-Tochtergesellschaft Smart Repair Pro an ein an OTC pink sheets notiertes US-Unternehmen unterzeichnet. Der Deal bewertet Smart Repair Pro mit etwa 13,125 Millionen Dollar. Im Gegenzug wird Jeffs' Brands 75% der Anteile des übernehmenden Unternehmens zum Zeitpunkt des Abschlusses erhalten, mit der Möglichkeit auf einen zusätzlichen 15% Anteil, wenn bestimmte Meilensteine erreicht werden, einschließlich der Notierung an einer nationalen US-Börse innerhalb von drei Jahren. Die Transaktion bewertet das übernehmende Unternehmen mit etwa 1,5 Millionen Dollar, vorausgesetzt, es gibt Mindestliquiditätsbestände von 750.000 Dollar. Der Abschluss des Deals wird bis zum 31. Dezember 2024 erwartet, vorbehaltlich der Due Diligence und behördlichen Genehmigungen.
- Smart Repair Pro subsidiary valued at $13.125 million
- Potential to acquire up to 90% ownership in acquiring company
- Strategic opportunity for U.S. market presence through separate public entity
- Transaction is non-binding and subject to due diligence
- Acquiring company trades on less liquid OTC pink sheets
- Deal completion uncertain and dependent on multiple conditions
Insights
This strategic transaction represents a significant restructuring for JFBR, valuing Smart Repair Pro at
The implied valuation dynamics are intriguing - while Smart Repair Pro is valued at
The
Jeffs' Brands plans to sell its wholly-owned U.S. subsidiary, Smart Repair Pro, to a public company, in exchange for an equity stake of up to
Tel Aviv, Israel, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Jeffs' Brands Ltd (“Jeffs’ Brands” or the “Company”) (Nasdaq: JFBR, JFBRW), a data-driven e-commerce company operating on the Amazon Marketplace, announced today that it has entered into a non-binding letter of intent (“LOI”) for the sale of its subsidiary – Smart Repair Pro (the “Transaction”), which operates Jeffs’ Brands’ stores on the U.S. Amazon Marketplace, marking a strategic shift in the Company’s global focus. Following the completion of the Transaction, Smart Repair Pro will be held by a separate U.S. public company, traded on the OTC pink sheets (the “Acquiring Company”), at a valuation of approximately
Under the terms of the LOI, Jeffs' Brands will transfer all the shares of Smart Repair Pro to the Acquiring Company, in exchange for
The Transaction reflects a valuation of approximately
The Transaction is expected to close by December 31, 2024, subject to the successful completion of due diligence by both parties, the execution of binding definitive agreements with respect to the Transaction, which shall include customary closing conditions, and compliance with any regulatory approvals. There is no guarantee when or if the Transaction will be completed.
About Jeffs’ Brands Ltd
Jeffs' Brands aims to transform the world of e-commerce by creating and acquiring products sold on Amazon Marketplace and turning them into market leaders, tapping into vast, unrealized growth potential. Through the Company’s management team’s insight into the FBA Amazon business model, it aims to use both human capability and advanced technology to take products to the next level. For more information on Jeffs’ Brands Ltd visit https://jeffsbrands.com.
Forward-Looking Statement Disclaimer
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. For example, we are using forward-looking statements when discussing the Transaction, which is subject to the execution of binding definitive agreements, the completion of the Transaction, the valuation of the Transaction, the value of the consideration, the performance of the Acquiring Company and our focus on core markets. Forward-looking statements are neither historical facts nor assurances of future performance Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to adapt to significant future alterations in Amazon’s policies; our ability to sell our existing products and grow our brands and product offerings, including by acquiring new brands; our ability to meet our expectations regarding the revenue growth and the demand for e-commerce; the overall global economic environment; the impact of competition and new e-commerce technologies; general market, political and economic conditions in the countries in which we operate; projected capital expenditures and liquidity; the impact of possible changes in Amazon’s policies and terms of use; the impact of the conditions in Israel, including the recent attacks by Hamas, Iran, and other terrorist organizations; and the other risks and uncertainties described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission (“SEC”), on April 1, 2024 and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Investor Relations Contact:
Michal Efraty
Adi and Michal PR- IR
Investor Relations, Israel
michal@efraty.com
FAQ
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