SciSparc Acquires Top Seller on Amazon, Welllution, for $20 Million

SciSparc Ltd. SPRC has entered into the definitive agreements for its acquisition of Welllution, an Amazon.com Marketplace account, an American brand of dietary supplements and cosmetics. As part of the acquisition, the company incorporated a new wholly-owned Delaware subsidiary, SciSparc Nutraceuticals Inc., to hold the new assets. The definitive agreement for the acquisition of the brand has been concluded with Merhavit M.R.M Holding and Management Ltd.

Wellution sells dozens of hemp products, including hemp gummies, hemp oil capsules, hemp gel, hemp cream, detox pills, anti-height pills, antibacterial creams and anti-aging creams, among other beauty and hair care products that are all made in the USA.

At closing, SciSparc paid a base cash payment of $4.59 million and, in 12 months, will pay an additional deferred cash payment equal to a multiple of 3 times the amount by which the brand's EBITDA exceeds $1.12 million in the 12-month period following the closing of the acquisition.

In addition, the company issued $15 million worth of warrants to M.R.M to purchase common stock of SciSparc at an exercise price of $7.00 per share and with a exercise period of five years from the closing of the acquisition call for tenders. The warrants will become exercisable upon reaching a milestone of $100 million in total brand sales or if the price of SciSparc common stock closes at $10.00 or higher.

Photo: Benzinga; Sources: courtesy of geralt, lindsayfox via Pixabay

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SciSparc Acquires Top Seller on Amazon, Welllution, for $20 Million

SciSparc Ltd. SPRC has entered into the definitive agreements for its acquisition of Welllution, an Amazon.com Marketplace account, an American brand of dietary supplements and cosmetics. As part of the acquisition, the company incorporated a new wholly-owned Delaware subsidiary, SciSparc Nutraceuticals Inc., to hold the new assets. The definitive agreement for the acquisition of the brand has been concluded with Merhavit M.R.M Holding and Management Ltd.

Wellution sells dozens of hemp products, including hemp gummies, hemp oil capsules, hemp gel, hemp cream, detox pills, anti-height pills, antibacterial creams and anti-aging creams, among other beauty and hair care products that are all made in the USA.

At closing, SciSparc paid a base cash payment of $4.59 million and, in 12 months, will pay an additional deferred cash payment equal to a multiple of 3 times the amount by which the brand's EBITDA exceeds $1.12 million in the 12-month period following the closing of the acquisition.

In addition, the company issued $15 million worth of warrants to M.R.M to purchase common stock of SciSparc at an exercise price of $7.00 per share and with a exercise period of five years from the closing of the acquisition call for tenders. The warrants will become exercisable upon reaching a milestone of $100 million in total brand sales or if the price of SciSparc common stock closes at $10.00 or higher.

Photo: Benzinga; Sources: courtesy of geralt, lindsayfox via Pixabay