Business
SciSparc Signs a Non- Binding Letter of Intent to Acquire American Food Supplements and Cosmetics Brand in Approximately $20 Million Deal
The Letter of Intent contemplates the purchasing of a brand, trademark and Amazon.com seller account, a management agreement, a U.S. distribution agreement
About this update from Scisparc Ltd.
[{"type":"text","content":"The Letter of Intent contemplates the purchasing of a brand, trademark and Amazon.com seller account, a management agreement, a U.S. distribution agreement and an option to expand to new territories TEL AVIV, Israel, Aug. 15, 2022 (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 that it has signed a non-binding letter of intent (“LOI”) with Merhavit M.R.M Holding and Management Ltd (“M.R.M”), to acquire from it its rights to purchase, a top-seller Amazon.com account and American food supplements and cosmetics brand and trademark (the “Brand”). The Brand offers dozens of GMP (Good Manufacturing Practice) manufactured hemp-based, U.S. made, top-ranked products, including various food supplements for different purposes and cosmetics. The LOI also describes, in addition to the potential acquisition of the Brand, a management agreement to be entered into and an option to expand the brand to additional territories such as Canada and Europe, as well as a distribution agreement with a local U.S. distributor, which shall provide for a minimum initial order of the Brand’s products for $100,000 upon its execution. Upon entry into definitive documentation, the management agreement is expected to include fulfilment of the Amazon.com conditions, manufacturing, inventory and advertising management, storage and shipment to the Amazon.com warehouse, and maintaining a pre-determined profit level for the products. The management services would be provided by a company for which SciSparc’s Chief Executive Officer and director serves as directors. The distribution agreement would provide for the marketing and commercialization of the Brand’s products, through offline channels in the US. “Our decision to enter this LOI is part of a previous board of directors decision to search for strategic transactions in high growth, high potential markets. We believe that acquiring a profitable top-seller brand with millions of dollars in annual sales, combined with our knowledge and expertise, can provide value to our shareholders,” commented Oz Adler, SciSparc's Chief Executive Officer. “This potential transaction will expand our access to manufacturing and distribution channels, ...