Jeffs' Brands Ltd acquired 49% stake in SciSparc Nutraceuticals Inc. from SciSparc Ltd. for $3 million.
Jeffs' Brands Ltd (NasdaqCM:JFBR) acquired 49% stake in SciSparc Nutraceuticals Inc. from SciSparc Ltd. (NasdaqCM:SPRC) for $3 million on March 22, 2023. The consideration consists of $2.5 million in cash and additional deferred cash payments of approximately $489,330 accounting for price adjustments related to inventory and working capital, which will be paid in five equal monthly installments beginning in May 2023. As collateral for the payment in full of the Price Adjustment, SciSparc will hold back such number of shares of common stock of its Subsidiary, equal to the outstanding due amount of the Price Adjustment. As part of the definitive agreements, at the closing, Jeffs' Brands and the Subsidiary entered into a consulting agreement by which Jeffs' Brands will provide management services for Wellution for a monthly fee of $20,000; in addition, Jeffs' Brands will receive a signing bonus of $51,000. The consulting agreement is for an undefined period and may be terminated by either party with 30-days' advance notice. Oz Adler, the Chief Executive Officer and the Chief Financial Officer of the Company, is the Chairman of the board of directors of Jeffs' Brands. The Chairman of the Company, Amitay Weiss, and Moshe Revach are members of the board of directors of both SciSparc and Jeffs' Brands.