Jeffs’ Brands Secures $100 million Securities Purchase Agreement to Support the Exploration of Strategic Opportunities
Jeffs' Brands (NASDAQ:JFBR), an e-commerce company operating on Amazon Marketplace, has secured a $100 million Securities Purchase Agreement with an institutional investor. The company received an initial $4.5 million in gross proceeds for a $5.0 million convertible promissory note.
Starting December 1, 2025, the company can request additional notes of up to $2.5 million per quarter. The notes feature a 4% annual interest rate, convertible into ordinary shares at the lower of $6.80 per share or 88% of the lowest 20-day VWAP. The funds will be used for working capital, general corporate purposes, and potential acquisitions.
Jeffs' Brands (NASDAQ:JFBR), un'azienda di e-commerce che opera su Amazon Marketplace, ha stipulato un Accordo di Acquisto di Titoli da 100 milioni di dollari con un investitore istituzionale. La società ha ricevuto un incasso lordo iniziale di 4,5 milioni di dollari per una nota convertibile a termine da 5,0 milioni di dollari.
A partire dal 1° dicembre 2025, la società potrà richiedere ulteriori note fino a 2,5 milioni di dollari per trimestre. Le note prevedono un tasso di interesse annuo del 4%, convertibile in azioni ordinarie al prezzo più basso tra 6,80 dollari per azione o l'88% del prezzo medio ponderato per volume (VWAP) più basso su 20 giorni. I fondi saranno utilizzati per il capitale circolante, scopi aziendali generali e potenziali acquisizioni.
Jeffs' Brands (NASDAQ:JFBR), una empresa de comercio electrónico que opera en Amazon Marketplace, ha asegurado un Acuerdo de Compra de Valores por 100 millones de dólares con un inversor institucional. La compañía recibió un ingreso bruto inicial de 4,5 millones de dólares por una nota convertible a pagar de 5,0 millones de dólares.
A partir del 1 de diciembre de 2025, la compañía podrá solicitar notas adicionales de hasta 2,5 millones de dólares por trimestre. Las notas tienen una tasa de interés anual del 4%, convertible en acciones ordinarias al menor precio entre 6,80 dólares por acción o el 88% del VWAP más bajo de 20 días. Los fondos se utilizarán para capital de trabajo, propósitos corporativos generales y posibles adquisiciones.
Jeffs' Brands (NASDAQ:JFBR)는 아마존 마켓플레이스에서 운영되는 전자상거래 회사로, 기관 투자자와 1억 달러 규모의 증권 매입 계약을 체결했습니다. 회사는 5백만 달러 전환 사채 중 450만 달러의 초기 총 수익을 받았습니다.
2025년 12월 1일부터 회사는 분기당 최대 250만 달러까지 추가 사채를 요청할 수 있습니다. 이 사채는 연 4% 이자율을 가지며, 주당 6.80달러 또는 최저 20일 VWAP의 88% 중 낮은 가격으로 보통주로 전환 가능합니다. 자금은 운전자본, 일반 법인 목적 및 잠재적 인수에 사용될 예정입니다.
Jeffs' Brands (NASDAQ:JFBR), une entreprise de commerce électronique opérant sur Amazon Marketplace, a conclu un contrat d'achat de titres de 100 millions de dollars avec un investisseur institutionnel. La société a reçu un produit brut initial de 4,5 millions de dollars pour une note convertible de 5,0 millions de dollars.
À partir du 1er décembre 2025, la société pourra demander des notes supplémentaires jusqu'à 2,5 millions de dollars par trimestre. Les notes offrent un taux d'intérêt annuel de 4%, convertible en actions ordinaires au plus bas entre 6,80 dollars par action ou 88% du VWAP sur 20 jours le plus bas. Les fonds seront utilisés pour le fonds de roulement, des objectifs généraux de l'entreprise et d'éventuelles acquisitions.
Jeffs' Brands (NASDAQ:JFBR), ein E-Commerce-Unternehmen, das auf dem Amazon Marketplace tätig ist, hat eine Wertpapierkaufvereinbarung über 100 Millionen US-Dollar mit einem institutionellen Investor abgeschlossen. Das Unternehmen erhielt anfänglich 4,5 Millionen US-Dollar Bruttoerlös für eine 5,0 Millionen US-Dollar wandelbare Schuldverschreibung.
Ab dem 1. Dezember 2025 kann das Unternehmen zusätzliche Schuldverschreibungen von bis zu 2,5 Millionen US-Dollar pro Quartal anfordern. Die Schuldverschreibungen haben einen jährlichen Zinssatz von 4% und sind wandelbar in Stammaktien zum niedrigeren Wert von 6,80 US-Dollar pro Aktie oder 88% des niedrigsten 20-Tage VWAP. Die Mittel werden für das Betriebskapital, allgemeine Unternehmenszwecke und mögliche Übernahmen verwendet.
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Insights
Jeffs' Brands secures flexible $100M financing with notable dilution risks and concerning related-party aspects.
Jeffs' Brands has secured a significant financing arrangement that offers both flexibility and potential concerns for investors. The $100 million Securities Purchase Agreement (SPA) provides the company with considerable capital access, with $4.5 million already received from the initial $5 million note issuance (indicating a 10% discount).
The structure offers Jeffs' Brands substantial flexibility, with the ability to draw additional capital quarterly beginning December 2025, no minimum drawdown requirements, and no operational restrictions. The company maintains discretion over issuance timing, which provides valuable optionality for managing their capital needs.
However, several concerning elements warrant investor attention. The conversion terms—allowing notes to convert at either $6.80 per share or 88% of the lowest 20-day VWAP—create significant potential dilution through a lookback period mechanism that effectively guarantees the investor a 12% discount to market prices. This variable conversion feature tends to create selling pressure as investors often hedge their positions.
Additionally, the related-party aspect raises governance questions, as CEO Vik Hakmon appears to have family connections to the institutional investor. While the company followed proper approval protocols through its audit committee and board, this relationship merits scrutiny.
The initial 4% interest rate seems favorable, but the steep increase to 14% upon default creates substantial downside risk. The repayment structure, with ten equal monthly installments beginning 18 months after issuance, could create future cash flow challenges if the business doesn't perform as expected.
This financing provides needed capital for Jeffs' Brands' strategic initiatives and acquisitions, but the potential dilution and governance concerns temper what might otherwise be viewed as a positive development.
The Company received
Tel Aviv, Israel, June 26, 2025 (GLOBE NEWSWIRE) -- Jeffs' Brands Ltd (“Jeffs’ Brands” or the “Company”) (Nasdaq: JFBR, JFBRW), a data-driven e-commerce company operating on the Amazon Marketplace, today announced that it has entered into a Securities Purchase Agreement (the “SPA”), with an institutional investor (the “Investor”), pursuant to which the Company may issue and sell, from time to time, convertible promissory notes (the “Promissory Notes”) in an aggregate principal amount of up to
Aegis Capital Corp. acted as independent advisor for the transaction.
Pursuant to and subject to the conditions set forth in the SPA, beginning on December 1, 2025, the Company may request that the Investor purchase additional Promissory Notes (the “Additional Promissory Notes”), each in a principal amount of up to
In addition, if at any time following the Initial Closing, the daily trading volume of the Company’s ordinary shares, no par value (the “Ordinary Shares”) is at least
Each Additional Promissory Note will be issued at a
At the Investor’s option, outstanding amounts due under each Promissory Note may be converted into Ordinary Shares of the Company (the “Note Shares”), at any time after the issuance date of such Promissory Note, at a conversion price equal to the lower of (i)
The Company is not obligated to issue any Additional Promissory Notes under the SPA and there are no penalties or minimum drawdown requirements. The SPA does not impose any restrictions on the Company’s operational or financing activities.
Vik Hakmon, the Company’s chief executive officer and a director, may be deemed to have a personal interest in the offering by virtue of being a family member of the controlling shareholder of L.I.A. Pure Capital Ltd., the Investor, and as such the offering was approved by the Company’s audit committee and board of directors in accordance with the Israeli Companies Law-1999.
About Jeffs’ Brands Ltd.
Jeffs' Brands aims to transform the world of e-commerce by creating and acquiring products and turning them into market leaders, tapping into vast, unrealized growth potential. Through the Company’s management team’s insight into the FBA Amazon business model, it aims to use 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, the Company is using forward-looking statements when discussing the terms and potential future issuances of Promissory Notes under the SPA, the Company’s intended use of proceeds, and its exploration of strategic opportunities. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of the Company’s 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 the Company’s control. The Company’s 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 the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the Company’s ability to adapt to significant future alterations in Amazon’s policies; the Company’s ability to sell its existing products and grow the Company’s brands and product offerings; the Company’s ability to meet its 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 the Company operates; projected capital expenditures and liquidity; the impact of possible changes in Amazon’s policies and terms of use; the impact of the conditions in Israel, and the other risks and uncertainties described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (“SEC”), on March 31, 2025 and our other filings with the SEC. The Company undertakes 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
michal@efraty.com
