Jeffs’ Brands Enters the Logistics Center Market by Closing Strategic Acquisition of a U.S. Company that Operates a U.S. Based Logistics Center
Jeffs' Brands (NASDAQ: JFBR) has completed a $2.6 million acquisition of Pure NJ Logistics , securing a strategic 100,000-square-foot logistics center with 20 loading docks in New Jersey. The facility's location near major U.S. ports and international airports positions the company to enhance its supply chain capabilities and third-party service offerings.
The acquisition terms include a $2.1 million base payment in cash and a $500,000 deferred payment through promissory notes at 9% annual interest, payable in ten monthly installments of $50,000 starting after six months. As security, JFBR issued warrants to sellers for 181,819 ordinary shares at a $2.75 exercise price. An additional $247,401.87 was paid for an outstanding security deposit under Pure Logistics' current lease agreement.
Jeffs' Brands (NASDAQ: JFBR) ha completato un'acquisizione di 2,6 milioni di dollari di Pure NJ Logistics, assicurandosi un centro logistico strategico di 100.000 piedi quadrati con 20 banchine di carico nel New Jersey. La posizione della struttura vicino ai principali porti statunitensi e agli aeroporti internazionali consente all'azienda di migliorare le proprie capacità nella catena di approvvigionamento e i servizi offerti da terzi.
I termini dell'acquisizione includono un pagamento base di 2,1 milioni di dollari in contanti e un pagamento differito di 500.000 dollari tramite cambiali al 9% di interesse annuale, pagabile in dieci rate mensili di 50.000 dollari a partire dopo sei mesi. Come garanzia, JFBR ha emesso opzioni per i venditori per 181.819 azioni ordinarie a un prezzo di esercizio di 2,75 dollari. È stato pagato un ulteriore importo di 247.401,87 dollari per un deposito di sicurezza in sospeso ai sensi dell'attuale contratto di locazione di Pure Logistics.
Jeffs' Brands (NASDAQ: JFBR) ha completado una adquisición de 2.6 millones de dólares de Pure NJ Logistics, asegurando un centro logístico estratégico de 100,000 pies cuadrados con 20 muelles de carga en Nueva Jersey. La ubicación de la instalación cerca de los principales puertos de EE. UU. y aeropuertos internacionales posiciona a la empresa para mejorar sus capacidades de cadena de suministro y ofertas de servicios de terceros.
Los términos de la adquisición incluyen un pago base de 2.1 millones de dólares en efectivo y un pago diferido de 500,000 dólares a través de pagarés con un interés anual del 9%, pagadero en diez cuotas mensuales de 50,000 dólares a partir de seis meses. Como garantía, JFBR emitió opciones a los vendedores por 181,819 acciones ordinarias a un precio de ejercicio de 2.75 dólares. Se pagó un monto adicional de 247,401.87 dólares por un depósito de seguridad pendiente bajo el actual contrato de arrendamiento de Pure Logistics.
제프스 브랜드 (NASDAQ: JFBR)는 260만 달러에 Pure NJ Logistics를 인수하여 20개의 적재 도크가 있는 10만 평방피트 물류 센터를 뉴저지에 확보했습니다. 주요 미국 항구 및 국제 공항 근처에 위치한 이 시설은 회사가 공급망 능력과 제3자 서비스 제공을 강화할 수 있도록 합니다.
인수 조건에는 210만 달러의 기본 현금 지급과 50만 달러의 이연 지급이 포함되며, 이는 연 9%의 이자를 가진 약속어음으로, 6개월 후부터 시작하여 10개월 동안 매달 5만 달러씩 지급됩니다. 담보로 JFBR은 판매자에게 2.75달러의 행사 가격으로 181,819주 보통주에 대한 워런트를 발행했습니다. Pure Logistics의 현재 임대 계약에 따른 미지급 보증금으로 추가로 247,401.87달러가 지급되었습니다.
Jeffs' Brands (NASDAQ: JFBR) a finalisé une acquisition de 2,6 millions de dollars de Pure NJ Logistics, sécurisant un centre logistique stratégique de 100 000 pieds carrés avec 20 quais de chargement dans le New Jersey. L'emplacement de l'installation à proximité des principaux ports américains et des aéroports internationaux positionne l'entreprise pour améliorer ses capacités de chaîne d'approvisionnement et ses offres de services tiers.
Les conditions de l'acquisition incluent un paiement de base de 2,1 millions de dollars en espèces et un paiement différé de 500 000 dollars par le biais de billets à ordre avec un intérêt annuel de 9 %, payable en dix mensualités de 50 000 dollars commençant après six mois. En garantie, JFBR a émis des bons de souscription aux vendeurs pour 181 819 actions ordinaires à un prix d'exercice de 2,75 dollars. Un montant supplémentaire de 247 401,87 dollars a été payé pour un dépôt de garantie en cours en vertu du contrat de location actuel de Pure Logistics.
Jeffs' Brands (NASDAQ: JFBR) hat eine Akquisition von 2,6 Millionen Dollar für Pure NJ Logistics abgeschlossen und sich ein strategisches Logistikzentrum von 100.000 Quadratfuß mit 20 Ladebuchten in New Jersey gesichert. Die Lage der Einrichtung in der Nähe wichtiger US-Häfen und internationaler Flughäfen positioniert das Unternehmen, um seine Lieferkettenfähigkeiten und Dienstleistungen von Dritten zu verbessern.
Die Bedingungen der Akquisition umfassen eine Basiszahlung von 2,1 Millionen Dollar in bar und eine aufgeschobene Zahlung von 500.000 Dollar durch Schuldscheine mit 9% Jahreszins, zahlbar in zehn monatlichen Raten von 50.000 Dollar, beginnend nach sechs Monaten. Als Sicherheit hat JFBR den Verkäufern Warrants für 181.819 Stammaktien zu einem Ausübungspreis von 2,75 Dollar ausgegeben. Zusätzlich wurden 247.401,87 Dollar für eine ausstehende Sicherheitsleistung gemäß dem aktuellen Mietvertrag von Pure Logistics gezahlt.
- Strategic acquisition of 100,000 sq ft logistics facility enhances supply chain capabilities
- Prime location near major ports and airports improves operational efficiency
- Potential for additional revenue through third-party logistics services
- 20 loading docks enable high-volume container handling and scalable operations
- Additional debt burden from $500,000 deferred payment at 9% interest rate
- Potential shareholder dilution from 181,819 warrant shares if exercised
- Related party transaction involving former director and family connection to CEO
Insights
Jeffs' Brands has completed a
The deal structure reveals careful financial engineering:
This vertical integration strategy aims to strengthen JFBR's e-commerce supply chain while developing a new revenue stream through third-party logistics services. The facility's strategic location near major ports and airports positions it for operational efficiencies in inventory management and order fulfillment.
However, the transaction complexity and related-party elements (former director as seller, CEO's family connections to one selling entity) warrant scrutiny. The substantial upfront cash requirement raises questions about immediate impact on JFBR's cash position and the potential dilution risk from the warrant structure if payments aren't met. While strategically sound for supply chain control, this represents a substantial financial commitment that will require careful execution to deliver value.
This logistics center acquisition gives Jeffs' Brands important physical infrastructure in a premium location that meaningfully enhances its operational capabilities. The 100,000 square foot facility with 20 loading docks provides substantial capacity for an e-commerce business previously lacking physical logistics assets.
The facility's positioning near major northeastern transportation hubs creates a strategic advantage through proximity to Newark and JFK airports plus maritime shipping channels. This multi-modal access point significantly reduces transportation lead times and provides important flexibility during high-volume periods. For an Amazon Marketplace seller, this infrastructure can directly impact performance metrics through faster fulfillment and inventory positioning.
Beyond internal operations, the third-party service offering represents an opportunity to monetize excess capacity and transform a cost center into a revenue generator. However, successfully operating a logistics business requires specialized expertise and systems that differ from e-commerce merchandising.
The 20 loading docks indicate substantial throughput capability, suggesting Jeffs' Brands is positioning for significant volume growth or substantial third-party business. Warehouse automation systems aren't mentioned but would be important for maximizing the facility's productivity. This acquisition appears strategically sound from a supply chain perspective but execution quality will determine whether the substantial investment delivers operational advantages proportionate to its cost.
Jeffs’ Brands Announces the closing of a
Tel Aviv, Israel, March 18, 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 the closing (“Closing”) of the acquisition of Pure NJ Logistics LLC (“Pure Logistics”), a company that operates a strategically located approximately 100,000 square foot logistics center equipped with 20 loading docks in New Jersey, through its wholly-owned subsidiary, Smart Repair Pro, pursuant to the definitive agreement previously announced on March 11, 2025. With this acquisition, the Company anticipates to strengthen its supply chain and third-party service offerings.
Situated near a major port in the United States and in close proximity to Newark Liberty International and John F. Kennedy International Airports, the logistics center will support Jeffs’ Brands' expansion while also offering services to third parties. Its prime location enables to streamline transportation and logistics operations, for faster turnaround times and enhanced efficiency for inventory management and order fulfillment. Additionally, with 20 loading docks, the facility is designed to accommodate high container volumes, enabling to scale operations effectively and meet growing customer demand in today’s fast-paced e-commerce landscape.
At the Closing of the acquisition, Smart Repair Pro acquired
As security for the full repayment of the promissory notes, the Company issued to the Sellers warrants to purchase ordinary shares, no par value, of Jeffs’ Brands (the “Ordinary Shares”), at an exercise price per share initially equal to
In addition, pursuant to the terms of the definitive agreement, Smart Repair Pro delivered to the Sellers an aggregate cash payment of
Eli Yoresh, one of the Sellers is a former director of the Company. Viki Hakmon, the Company’s chief executive officer and a director, may be deemed to have a personal interest in the acquisition by virtue of being a family member of the controlling shareholder of L.I.A. Pure Capital Ltd., one of the Sellers, and as such the acquisition 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, 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 aim 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, 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, the Company is using forward-looking statements when discussing the anticipated strategic benefits from the Acquisition, including the Company’s expansion to offering services to third parties and strengthening its supply chain. Instead, this is based only on the Company’s current beliefs, expectations and assumptions regarding the future of the Company’s 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 the Company’s control. The Company’s 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 the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the Company’s ability to adapt to significant future alterations in Amazon’s policies; the Company’s ability to sell the Company’s existing products and grow the Company’s brands and product offerings, including by acquiring new brands; the Company’s ability to meet the Company’s 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 SEC, on April 1, 2024 and the Company’s other filings with the SEC. The Company undertakes 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
What is the total value of JFBR's acquisition of Pure NJ Logistics?
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What are the terms of the deferred payment in JFBR's logistics center acquisition?
What warrants did JFBR issue as part of the logistics center acquisition?
