Core Viewpoint - Jeffs' Brands Ltd has entered into a Securities Purchase Agreement to issue up to $100 million in convertible promissory notes, with an initial closing resulting in $4.5 million in gross proceeds from a $5 million note [1][3]. Group 1: Securities Purchase Agreement Details - The Company issued an initial $5 million Promissory Note for a purchase price of $4.5 million [1]. - The Company may request additional Promissory Notes of up to $2.5 million per quarter starting December 1, 2025, with a total limit of $50 million until that date and $25 million per quarter thereafter [3][4]. - Each Additional Promissory Note will be issued at a 10% original issue discount and will accrue interest at an annual rate of 4%, increasing to 14% upon default [5]. Group 2: Conversion and Repayment Terms - The Investor has the option to convert outstanding amounts under each Promissory Note into Ordinary Shares at a conversion price of either $6.80 per share or 88% of the lowest daily volume weighted average price during the preceding 20 trading days, subject to a 4.99% ownership limitation [6]. - Each Promissory Note is to be repaid in ten equal monthly installments starting 18 months after issuance [5]. Group 3: Company Strategy and Use of Proceeds - The net proceeds from the sale of the Promissory Notes will be used for working capital, general corporate purposes, and potential acquisitions to explore strategic opportunities [3]. - The Company is not obligated to issue any Additional Promissory Notes and there are no penalties or minimum drawdown requirements [7]. Group 4: Company Background - Jeffs' Brands aims to transform e-commerce by creating and acquiring products to become market leaders, leveraging insights into the Amazon FBA business model [9].
Jeffs' Brands Secures $100 million Securities Purchase Agreement to Support the Exploration of Strategic Opportunities