Jeffs’ Brands (NASDAQ:JFBR)
Following its IPO, Jeffs’ Brands (NASDAQ:JFBR) saw a decline in value on Friday, plummeting more than 40%. The initial public offering price for the e-commerce company was $4.16 per unit. One common share plus a warrant to buy one common share, each with an exercise price of $4.04 per share, make up each unit.
JFBR started off at $3 and lost money after that. The stock dropped to a session low of $2.16 before stabilizing. The name was trading at $2.31 at about 1:15 p.m. ET, down $1.84 from its initial offering price.
Amazon’s sales platform accounts for 95%–100% of the revenue generated by the Israeli e-commerce company. The business is in charge of such brands as Top Rank and Smart Repair Pro. According to Jeffs’ Brands regulatory papers made in the run-up to the IPO, its revenue for 2021 will range between $6.35M and $6.5M. It had an operational deficit of $0.6 to $0.7 million.
Aegis Capital Corp.’s Involvement in the Deal
Additionally, in order to cover any potential over-allotments, Jeffs’ Brands has given Aegis Capital Corp. (“Aegis”) a 45-day option to purchase up to an extra number of ordinary shares and/or warrants equal to 15% of the units issued in the offering. The public offering price of one unit (minus $0.01 allotted to each warrant), less the underwriting discount, will be the purchase price to be paid for each additional ordinary share. Each additional warrant must be purchased for a price of $0.01. If Aegis chooses to only buy these warrants while exercising its option, the additional funds will be insignificant. Before subtracting underwriting discounts and offering costs, the total gross proceeds of the offering, including overallotment, are anticipated to be about $17.8 million if Aegis exercises the option in full for ordinary shares.
Featured Image: Megapixl @Natalimis
Author Jowi Kwasu 
