Business
SciSparc will Deposit $1 million in Escrow for its Intention to Enter Into an Agreement to Acquire American Food Supplements and Cosmetics Brand
The Company has signed an escrow agreement following the signing of a non-binding letter of intent and will be deposit a $1.0 million as an initial intention
About this update from Scisparc Ltd.
[{"type":"text","content":"The Company has signed an escrow agreement following the signing of a non-binding letter of intent and will be deposit a $1.0 million as an initial intention to enter into a definitive acquisition agreement TEL AVIV, Israel, Aug. 18, 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 following the signing of 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 Company signed additional agreements with respect to its intention to acquire the Brand. As an indication of its intention to negotiate and enter into a definitive acquisition agreement, SciSparc has agreed to transfer $1.0 million to an escrow agent. In the event of signing a binding definitive agreement to purchase the Brand, the $1.0 million will be used as part of the overall amount to be paid by Scisparc. In the event the parties do not reach an agreement on the terms and a definitive acquisition agreement is not signed, the Company will bare the costs of $50,000 and the remaining escrow amount of $950,000 will be release to the Company. 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. 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 a director. The distribution agreement would provide for the marketing and com...