Sativus Tech Corp Announces Crowd Funding Initiative for Its Subsidiary, Saffron Tech Ltd, at a Nis 32.5 Million Valuation (us$ 10 Million). Aiming to raise NIS 5 Million (US$ 1.5 Million) at NIS 4.51 (US$1.38) per share.
Sativus Tech Corp. (OTC: SATT) has announced its intention to raise up to 5 million New Israeli Shekels (“NIS”) (approximately $1.5 million) at a pre-money valuation of NIS 32.5 million (approximately $10 million) through the Israeli crowdfunding platform – Pipelbiz for its subsidiary Saffron Tech Ltd.
Assuming the maximum amount is raised, the Company will own approximately 61% of Saffron Tech. This crowdfunding financing follows similar financing completed by Saffron Tech in early 2021. In the past two months, Saffron Tech also raised NIS 800 thousand (approximately $242 thousand) through the issuance of SAFEs. The SAFEs are convertible at a 20% discount to the current crowdfunding round.
The company announced the results of an evaluation conducted by an independent lab proving that the saffron produced in this growth cycle shows that in most categories, it was of the highest quality with other traits close to optimum. In addition, preliminary results from the latest lab results show that saffron can be harvested in a 3-month growth cycle, indicating a strong chance that Saffron Tech will be able to successfully complete 4 cycles per year. Traditional agriculture is only able to produce one production cycle annually through a labor-intensive harvest process using manual labor and is dependent on capricious climate conditions.
The groundbreaking developments allow the company to advance its business plan by expanding production facilities worldwide.
Saffron market growth has been hindered due to low annual production yield and a complicated supply chain. Sativus Tech seeks to produce a reliable supply of saffron to expand the market in multiple sectors including retail, pharmaceutical, culinary, beauty and wellness.