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TEL AVIV - Jeffs’ Brands Ltd (NASDAQ:JFBR, JFBRW), an e-commerce operator on the Amazon Marketplace with annual revenues of $13.7 million and 37% year-over-year growth, has announced a definitive agreement to sell its subsidiary Smart Repair Pro and a 49.1% stake in SciSparc Nutraceuticals Inc. to Plantify Foods, Inc. (TSXV:PTFY). According to InvestingPro data, the company has experienced significant market volatility, with its shares down 80% over the past six months. In return, Jeffs’ Brands will receive up to a 90% equity interest in the Canadian company, based on a post-closing valuation of CAD 17.125 million for Smart Repair Pro and the SciSparc stake, and CAD 4.85 million for Plantify Foods, contingent on certain cash holdings.
Smart Repair Pro, which operates Jeffs’ Brands’ stores on Amazon U.S. and owns Pure NJ Logistics LLC, will be transferred to Plantify Foods upon closing of the transaction, initially granting Jeffs’ Brands a 75% stake in Plantify Foods. InvestingPro analysis reveals the company maintains a strong liquidity position with a current ratio of 4.4, though it faces profitability challenges with negative EBITDA of $4.2 million in the last twelve months. Additional shares may be awarded to reach up to 90% ownership if certain milestones are achieved. The deal is expected to be finalized by July 31, 2025, pending customary closing conditions and regulatory approvals.
The strategic move will result in Jeffs’ Brands’ direct ownership interest being held by Plantify Foods. Following the transaction, Jeffs’ Brands’ current chairman Oz Adler is set to become the chairman of Plantify Foods, with CFO Ronen Zalayet taking on the roles of CFO and corporate secretary.
The agreement received approval from Jeffs’ Brands’ audit committee and board of directors, in compliance with Israeli Companies Law, despite certain directors holding positions in both companies.
Jeffs’ Brands, known for leveraging data to transform e-commerce brands into market leaders, emphasizes that the transaction’s completion is not guaranteed. The company’s future plans and financial projections, including those related to this deal, are considered forward-looking statements and are subject to risks and uncertainties that may cause actual results to differ materially. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, though investors should note the company’s weak overall financial health score of 1.4 out of 5.
This news is based on a press release statement from Jeffs’ Brands Ltd.
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