Jeffs’ Brands Enters Into Definitive Agreement to Complete Fort Products’ Merger with a Publicly Traded Company, at a Valuation of up to approximately $12 Million
Jeffs' Brands (Nasdaq: JFBR) has entered into a definitive agreement for the merger of its UK-based subsidiary Fort Products with Impact Acquisitions Corp, a TSX Venture Exchange-listed company. The merger values Fort Products at approximately US $11.9 million, with Impact's valuation at US $3.3 million.
Under the agreement, Jeffs' Brands will receive between 75.02% and 83.29% ownership of Impact's share capital, subject to meeting specific milestones. The deal requires Fort Products' fair market value to be at least CAD 14 million (US $9.7 million). The transaction is expected to complete by May 31, 2025, pending due diligence, regulatory approvals, and Israeli Tax Authority Pre-Ruling.
Jeffs' Brands (Nasdaq: JFBR) ha raggiunto un accordo definitivo per la fusione della sua filiale britannica Fort Products con Impact Acquisitions Corp, una società quotata al TSX Venture Exchange. La fusione valuta Fort Products circa 11,9 milioni di dollari USA, con una valutazione di Impact di 3,3 milioni di dollari USA.
Nel quadro dell'accordo, Jeffs' Brands otterrà una partecipazione tra il 75,02% e l'83,29% del capitale sociale di Impact, a condizione di soddisfare specifici traguardi. L'affare richiede che il valore di mercato equo di Fort Products sia almeno di 14 milioni di dollari CAD (9,7 milioni di dollari USA). Si prevede che la transazione si completi entro il 31 maggio 2025, in attesa di due diligence, approvazioni normative e Pre-Ruling dell'Autorità Fiscale Israeliana.
Jeffs' Brands (Nasdaq: JFBR) ha llegado a un acuerdo definitivo para la fusión de su filial británica Fort Products con Impact Acquisitions Corp, una compañía que cotiza en el TSX Venture Exchange. La fusión valora a Fort Products en aproximadamente 11,9 millones de dólares estadounidenses, con una valoración de Impact de 3,3 millones de dólares estadounidenses.
Según el acuerdo, Jeffs' Brands recibirá entre el 75,02% y el 83,29% de la propiedad del capital social de Impact, sujeto al cumplimiento de hitos específicos. El acuerdo requiere que el valor de mercado justo de Fort Products sea al menos de 14 millones de dólares CAD (9,7 millones de dólares estadounidenses). Se espera que la transacción se complete para el 31 de mayo de 2025, pendiente de la debida diligencia, aprobaciones regulatorias y el Pre-Ruling de la Autoridad Fiscal Israelí.
Jeffs' Brands (Nasdaq: JFBR)은 영국에 본사를 둔 자회사 Fort Products를 TSX 벤처 거래소에 상장된 Impact Acquisitions Corp와 합병하기 위한 최종 계약을 체결했습니다. 이 합병은 Fort Products의 가치를 약 1190만 달러로 평가하며, Impact의 가치는 330만 달러입니다.
계약에 따라 Jeffs' Brands는 특정 이정표를 충족하는 조건으로 Impact의 주식 자본의 75.02%에서 83.29% 사이의 소유권을 취득합니다. 거래는 Fort Products의 공정 시장 가치가 최소한 1400만 캐나다 달러(970만 달러) 이상일 것을 요구합니다. 이 거래는 2025년 5월 31일까지 완료될 것으로 예상되며, 이에는 적절한 실사, 규제 승인 및 이스라엘 세무 당국의 사전 ruling이 필요합니다.
Jeffs' Brands (Nasdaq: JFBR) a conclu un accord définitif pour la fusion de sa filiale britannique Fort Products avec Impact Acquisitions Corp, une société cotée en bourse sur le TSX Venture Exchange. La fusion évalue Fort Products à environ 11,9 millions de dollars américains, avec une évaluation d'Impact à 3,3 millions de dollars américains.
Selon l'accord, Jeffs' Brands recevra entre 75,02 % et 83,29 % de la propriété du capital social d'Impact, sous réserve de la réalisation de jalons spécifiques. L'accord exige que la juste valeur marchande de Fort Products soit au moins de 14 millions de dollars CAD (9,7 millions de dollars US). La transaction devrait être complétée d'ici le 31 mai 2025, sous réserve de la due diligence, des approbations réglementaires et du préjugé de l'Autorité fiscale israélienne.
Jeffs' Brands (Nasdaq: JFBR) hat eine endgültige Vereinbarung über die Fusion ihrer in Großbritannien ansässigen Tochtergesellschaft Fort Products mit Impact Acquisitions Corp, einem an der TSX Venture Exchange gelisteten Unternehmen, unterzeichnet. Die Fusion bewertet Fort Products auf etwa 11,9 Millionen US-Dollar, bei einer Bewertung von Impact von 3,3 Millionen US-Dollar.
Gemäß der Vereinbarung wird Jeffs' Brands eine Beteiligung von zwischen 75,02 % und 83,29 % am Eigenkapital von Impact erhalten, vorausgesetzt, bestimmte Meilensteine werden erreicht. Die Vereinbarung verlangt, dass der Marktwert von Fort Products mindestens 14 Millionen CAD (9,7 Millionen US-Dollar) beträgt. Die Transaktion soll bis zum 31. Mai 2025 abgeschlossen sein, abhängig von der Due Diligence, den behördlichen Genehmigungen und dem Pre-Ruling der israelischen Steuerbehörde.
- Merger values Fort Products at approximately US $11.9 million
- Jeffs' Brands to receive up to 83.29% ownership in Impact Acquisitions
- Impact has minimum cash position of US $486,330 after transaction costs
- Transaction completion subject to multiple conditions and approvals
- Potential conflict of interest with CEO having personal connection to transaction finders
- No guarantee of transaction completion as stated in PR
Insights
The definitive merger agreement between Fort Products and Impact Acquisitions Corp represents a strategic corporate restructuring that warrants careful analysis. The deal structure values Fort Products at up to
Several key aspects make this transaction noteworthy:
- The valuation floor requirement of
CAD 14 million ($9.7 million ) demonstrates confidence in Fort Products' fundamental value and provides downside protection for shareholders. - The structure effectively creates a dual-listed presence through Impact's TSX Venture listing, potentially expanding market access and liquidity options.
- The milestone-based ownership structure aligns incentives for performance while maintaining majority control.
However, investors should consider material risk factors:
- The transaction remains subject to multiple conditions, including tax authority pre-ruling and regulatory approvals.
- The CEO's disclosed potential conflict of interest through family ties to transaction finders, though properly managed through governance protocols, warrants monitoring.
- The extended closing timeline to May 31, 2025, introduces execution risk and market condition exposure.
The transaction's structure suggests a strategic move to unlock value through public markets access while maintaining operational control - a potentially accretive approach for Jeffs' Brands shareholders if successfully executed.
Tel Aviv, Israel, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Jeffs' Brands Ltd (“Jeffs’ Brands” or the “Company”) (Nasdaq: JFBR, JFBRW), a data-driven e-commerce company operating on the Amazon Marketplace, today announced it that, further to its press release on January 3, 2025, is has entered into a definitive agreement to complete the contemplated merger of Fort Products Limited, a UK-based private company and a wholly owned subsidiary of the Company (“Fort Products”), with Impact Acquisitions Corp. (“Impact”), a capital pool company listed on the TSX Venture Exchange (the “Proposed Merger”).
Under the definitive share purchase agreement (the “Definitive Agreement”), Impact Acquisitions will acquire from the Company
The Proposed Merger is based on a total valuation of Impact of approximately 4.8 million CAD (approximately US
According to the Definitive Agreement, a condition for the closing of Proposed Transaction is that the fair market value of the equity interests of Fort Products will not be less than 14 million CAD (approximately US
The completion of the Proposed Transaction is subject to the satisfaction of additional conditions, including but not limited to, due diligence, corporate and regulatory approvals and the receipt of a Pre-Ruling from the Israel Tax Authority.
Subject to the satisfaction or waiver of all conditions precedents to the Proposed Transaction, Impact and Jeffs’ Brands anticipate that the Proposed Transaction will be completed by May 31, 2025. There can be no assurance that the Proposed Transaction will be completed on the terms proposed above or at all.
In addition, upon closing of the Proposed Transaction, Impact intends to issue equity to certain finders (the “Finders”) as compensation for providing advisory services in connection with the Proposed Transaction. Mr. Viki Hakmon, the Company’s chief executive officer and director, may be deemed to have a personal interest in the Proposed Transaction, by virtue of being a relative of one of the Finders, and as such the Proposed Transaction was approved by the Company’s Audit Committee and Board of Directors in accordance with the Israeli Companies Law-1999.
About Jeffs’ Brands Ltd.
Jeffs' Brands aims to transform the world of e-commerce by creating and acquiring products 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.
About Fort Products
Fort Products is an established UK Based manufacturer and seller specializing in a range of amateur and professional products for the pest control and remedial repair industry. Fort Products’ experience commenced since it's establishment in 2005 within the pest control industry and it prides itself on the technical knowledge received in nearly 20 years.
About Impact
Impact is a capital cool company (“CPC”) within the meaning of the policies of the TSX Venture Exchange (the “Exchange”). Impact was created to identify and evaluate potential acquisitions of commercially viable businesses and assets that have the potential to generate profits and add shareholder value. Except as specifically contemplated in the CPC policy of the Exchange, until the completion of the Proposed Transaction or other “Qualifying Transaction” as defined in the policies of the Exchange, Impact will not carry on business other than identification and evaluation of companies, businesses or assets with a view to completing a proposed qualifying transaction.
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 Proposed Merger of Fort Products with Impact and the timing of its completion, the projected valuations, ownership percentages, and conditions required for the transaction. 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
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