Jeffs’ Brands to sell Smart Repair Pro for $13.13M

Jeffs’ Brands (JFBR) initiated steps for a strategic expansion with the execution of a non-binding Letter of Intent, or LOI, to sell its U.S. subsidiary, Smart Repair Pro. The proposed sale, valued at approximately $13.13M, will transfer Smart Repair Pro to a U.S. public company traded on the OTC pink sheets. Jeffs’ Brands has entered into an LOI under which it will transfer all shares of Smart Repair Pro to the acquiring company. In exchange, Jeffs’ Brands will receive 75% of the acquiring company’s issued and outstanding shares as the base payment upon closing of the transaction. Additionally, upon meeting certain milestones, including an uplisting of the acquiring company to a national U.S. exchange within three years of closing, Jeffs’ Brands will be granted an additional 15% equity stake as a deferred payment. The transaction reflects an initial valuation of approximately $1.5M for the acquiring company, taking into account the completion of the deferred payment and contingent on cash holdings of at least $750,000. The transaction is expected to close by December 31, subject to the successful completion of due diligence by both parties, the execution of binding definitive agreements with respect to the transaction, which shall include customary closing conditions, and compliance with any regulatory approvals. There is no guarantee when or if the transaction will be completed.