Business
SciSparc Signs a Definitive Agreement to Sell 49% interest in its Subsidiary that Owns Wellution for $2.5 million
TEL AVIV, Israel, Feb. 23, 2023 (GLOBE NEWSWIRE) -- SciSparc Ltd. (Nasdaq: SPRC) (“Company” or “SciSparc”), a specialty clinical-stage pharmaceutical company
About this update from Scisparc Ltd.
[{"type":"text","content":"TEL AVIV, Israel, Feb. 23, 2023 (GLOBE NEWSWIRE) -- SciSparc Ltd. (Nasdaq: SPRC) (“Company” or “SciSparc”), a specialty clinical-stage pharmaceutical company focusing on the development of therapies to treat disorders of the central nervous system, today announced it has signed a definitive agreement to sell a 49% interest in its wholly owned subsidiary, SciSparc Nutraceuticals Inc. (the “Subsidiary”), which owns WellutionTM , a top-selling Amazon.com Marketplace brand (\"Wellution\"), to a wholly-owned subsidiary of Jeffs' Brands Ltd. (\"Jeffs' Brands\")(Nasdaq: JFBR), a data-driven e-commerce company operating on Amazon, for $2.5 million in cash, subject to certain purchase price adjustments related to inventory and working capital expected to increase the purchase price by approximately $300,000, plus a mutual share exchange in the amount of $300,000 of ordinary shares from each of SciSparc and Jeffs’ Brands. The number of shares in the share exchange will be calculated based on the average closing price of the relevant company’s shares for 30 consecutive trading days ending on the third trading day immediately prior to closing the transaction. Following the closing of the transaction, which includes an equity conversion of financing amounts previously provided to the Subsidiary by SciSparc, SciSparc will hold approximately 51% of the Subsidiary. Closing of the transaction is subject to certain customary conditions and is expected to be completed within seven business days. At closing, Jeffs’ Brands and the Subsidiary will enter into a consulting agreement by which Jeffs’ Brands will provide management services for Wellution for a monthly fee of $20,000. The agreement is for an undefined period of time and may be terminated by either party with 30-days’ advance notice. \"The agreement expands our collaboration with Jeffs’ Brands for the online marketing and sale on Amazon of food supplement products following our recent letter of intent signed with Jeffs’ Brands for the development of a new food supplements product line and the online marketing of such supplements. We are pleased to have Jeffs' Brands as our partner which we believe will strengthen the Wellution brand,\" said Oz Adler, Chief Executive Officer of SciSparc. Wellution™ sells dozens of hemp-based, top-ranked products, including hemp gummies, hemp oil capsules, he...