The Company signed a non-binding letter of intent to invest $2.5 million for a 70% stake in a new company to be incorporated that will develop laser- based charging solutions for drones and unmanned aircrafts
Tel Aviv, Israel, Dec. 20, 2023 (GLOBE NEWSWIRE) -- Jeffs' Brands Ltd (“Jeffs’ Brands” or the “Company”) (Nasdaq: JFBR, JFBRW), a data-driven e-commerce company operating on the Amazon Marketplace, signed an additional non-binding letter of intent (“LOI") with Sky Growth Partners Ltd. (“Sky Growth”), to invest in advanced laser- based wireless power transmission technology systems, for the remote charging of drones and unmanned aircrafts (the “Investment”).
The LOI, previously announced on December 15, 2023, follows the Company’s announcement from November 29, 2023, in which the board of directors resolved to identify potential strategic transactions, in the field of advanced technologies, with the goal of maximizing shareholder value.
According to Allied Market Research, the global wireless power transmission market size was valued at $5.7 billion in 2020, and is projected to reach $35.2 billion by 2030, registering a CAGR of 21.3% from 2021 to 2030.1.
According to the LOI, Sky Growth will establish and transfer all of its rights in the technology to a new Israeli company that will develop, manufacture and market the technology ("NewCo"). Following an investment of $2.5 million by Jeffs’ Brands, it will hold a 70% equity interest in NewCo. The LOI also includes certain milestone conditions that if achieved by NewCo, will grant the founders, for no additional consideration, additional equity interests in NewCo.
NewCo plans on developing a technological system based on a pending patent. The system will enable wireless charging for drones and unmanned aircrafts. Unlike conventional charging methods, that rely on cumbersome cables, robust infrastructure, pads and more, Digital Light Processing (DLP) wireless charging systems utilizes precision laser to transmit energy wirelessly to infrastructure, drones, unmanned aircraft and other platforms. This technology eliminates the need for physical connectors, making the charging process more efficient, seamless, convenient and enabling new technologies to be developed and adopted, for various uses, such as commercial drone applications.
The Investment is subject to the successful completion of due diligence, the execution of binding definitive agreements with respect to the Investment and compliance with any regulatory requirements and approvals.
About Jeffs’ Brands Ltd
Jeffs' Brands is transforming the world of e-commerce by creating and acquiring products and turning them into market leaders, tapping into vast, unrealized growth potential. Through our stellar team’s insight into the FBA Amazon business model, we’re using both human capability and advanced technology to take products to the next level. For more information on Jeffs’ Brands Ltd visit https://jeffsbrands.com.
Forward-Looking Statement Disclaimer
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. For example, we are using forward-looking statements when discussing the growth of the global wireless power transmission market, the execution of binding definitive agreements with respect to the Investment, the completion of the Investment and the successful development of the laser-based technology for wireless charging. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to adapt to significant future alterations in Amazon’s policies; our ability to sell our existing products and grow our brands and product offerings, including by acquiring new brands; our ability to meet our expectations regarding the revenue growth and the demand for e-commerce; the overall global economic environment; the impact of competition and new e-commerce technologies; general market, political and economic conditions in the countries in which we operate; projected capital expenditures and liquidity; the impact of possible changes in Amazon’s policies and terms of use; and the other risks and uncertainties described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (“SEC”), on April 10, 2023 and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Investor Relations Contact:
Michal Efraty
Adi and Michal PR- IR
Investor Relations, Israel
+972-(0)52-3044404
michal@efraty.com
1 https://www.alliedmarketresearch.com/wireless-power-transmission-market
