Jeffs' Brands Ltd JFBR has inked a non-binding letter of intent with Sky Growth Partners Ltd. to invest in and develop defense solutions against drone-based visual systems.
The strategic move aims to invest in groundbreaking Digital Light Processing (DLP) laser-based technology, primarily targeting drone countermeasure solutions in the defense sector.
The LOI outlines Sky Growth's plan to establish a new Israeli firm, "NewCo," which will take charge of developing, manufacturing, and marketing the advanced technology. Jeffs' Brands' investment of $2 million will secure them a dominant 70% stake in NewCo.
Additionally, Jeffs' Brands commits to extending a credit line of up to $250,000 at an 8% annual interest, available to NewCo under mutually agreed conditions. The deal includes milestones that, once met, grant NewCo's founders extra equity at no extra cost.
The technology, currently under a pending patent, aims to revolutionize electro-optical defense; it merges lasers with DLP to disable cameras on drones and aircraft, offering dynamic, mobile, or stationary protection. Its uses include defense, countering drone attacks, and espionage prevention, pending due diligence and regulatory compliance.
Price Action: JFBR shares are trading higher by 12.31% at $3.65 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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