Sativus Tech has signed a non-binding LOI with Naveh Pharma, a company that specializes in creating pharmaceutical and healthcare products with unique active ingredients including saffron. The strategic joint venture is expected to accelerate growth for both companies as the fast-growing nutraceutical industry continues to expand with consumers looking for natural solutions for conditions such as depression and inflammation. The partnership creates undeniable value for both companies and their shareholders by creating a synergy where Saffron Tech would supply Naveh Pharma’s saffron-based supplements.
“This partnership aligns both companies’ unique strengths,” says Tal Wilk Glazer, CEO of Saffron Tech. “Using our premium, lab-grown saffron in nutraceutical and pharmaceutical applications is a testament to the quality of saffron that we are producing. We see significant value in saffron-based supplements, and we look forward to working with Naveh Pharma to unlock the potential of our combined businesses.”
Under the terms of the transaction, Saffron Tech will invest $1.5 million and will hold 70% of the equity of the joint venture. In addition, as part of the agreement, Naveh Pharma will commit to purchase from Saffron Tech, at least 100 kg of saffron extract at over $2,000 a kg which translates to $23,000 per kg of pure saffron.
"I realized long ago that saffron is not just a spice,” says Nitzan Primor, CEO, Naveh Pharma. “Saffron contains ingredients with amazing medicinal properties that could benefit so many if they had access to it. Naveh Pharma and Saffron Tech can leverage their respective research and development data to develop unique and innovative products for the market. The possibility of creating a reliable and pharmaceutical-grade saffron for the world market is a proud milestone for both of our companies.”
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