The LOI follows Jeffs’ Brands’ announcement from November 29, in which the board of directors resolved to identify potential strategic transactions, in the field of advanced technologies, with the goal of maximizing shareholder value.
According to the LOI, Sky Growth will establish and transfer all of its rights in the technology to a new Israeli company that will develop, manufacture and market the technology. Following an investment of $2.5 million by Jeffs’ Brands, it will hold a 70% equity interest in NewCo.
The LOI also includes certain milestone conditions that if achieved by NewCo, will grant the founders, for no additional consideration, additional equity interests in NewCo.
The investment is subject to the successful completion of due diligence, the execution of binding definitive agreements with respect to the Investment and compliance with any regulatory requirements and approvals.
MDGS shares gave back 33 cents, or 8.6%, to $3.50.
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