Naveh Pharma currently achieves annual revenues of $1.3m and a net profit of $300,000 and is growing at 30% per year
Joint Venture creates a gateway for Saffron Tech to continue its R&D efforts with the new revenue stream.
Saffron Tech to service pharma companies looking to leverage the natural medicinal properties of saffron in pharmaceutical and nutraceutical applications.
Tel Aviv, Israel, March 02, 2022 (GLOBE NEWSWIRE) -- Sativus Tech Corp (OTC: SATT), an AgTech company that is developing the protocols to grow saffron using vertical farming technology, today announced that its subsidiary, Saffron 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 grown 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.”
The joint venture plans to develop and distribute a line of saffron-based food supplements globally in 2022 and launch a line of saffron-based cosmetics in the second half of 2022. Shared revenues from this joint venture will include existing products already being sold by Naveh Pharma, including a series of seven saffron-based products used for antidepressants, mood support, ADHD and more.
This collaboration could be the first step in a significant increase in the market of saffron-based food supplements and cosmetics supplements.
Completion of the deal is subject to singing a definitive agreement which the Company expenses will occur by the end of March 2022.
About Sativus Tech Corp:
Sativus Tech Corp (OTC: SATT) is an AgTech company that uses advanced vertical farming technology to increase the production of low yield food products in the global marketplace. The company focuses on the research, development, and commercialization of agriculture products that are high in demand but scarce in the marketplace. A reliable supply of these highly coveted food products can be used in various applications including pharmaceutical, nutraceutical, culinary, and the beauty industry. Sativus Tech Corp’s subsidiary, Saffron Tech, is revolutionizing the AgTech world by creating the protocols to grow saffron in indoor vertical farms. It is also increasing the production of the spice by multiplying the number of annual harvests. Sativus Tech Corp’s technology offers a responsible and sustainable way to grow crops in a world confronted by environmental challenges and dwindling earth reserves, diminishing water sources and unstable weather conditions.
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