Save Foods, Inc. (NasdaqCM:SVFD) entered into a stock exchange agreement to acquire 19.99% stake in Yaaran Investments Ltd. on July 11, 2023. Under the terms of agreement, Company agreed to issue to Yaaran 19.99% of its issued and outstanding capital stock as of immediately prior to the Closing (as defined in the Agreement), and in consideration thereof Save Foods Ltd., the majority-owned subsidiary of the Company, shall be issued such number of shares representing 60% of NewCo?s share capital on a fully diluted pre-Closing basis. On July 27, 2023, the Parties closed the transactions set forth in the Agreement, as amended by the Amendment. Upon the Closing, Save Foods issued 1,561,051 Save Foods Exchange Shares to Yaaran, which amount represented 19.99% of Save Foods? outstanding capital stock as of immediately prior to the Closing (and 16.66% of Save Foods? outstanding capital stock as of immediately following the Closing), and in exchange thereof, upon the formation of NewCo, Save Foods shall be issued 4,200,000 ordinary shares of NewCo.
As part of the Agreement, Save Foods has committed to support NewCo?s commercialization efforts of certain technologies researched and developed together with The Government of Israel on behalf of the State of Israel, represented by the Head of the Agricultural Research Organization and the Treasurer of A.R.O., by making available up to $1.2 million in three conditional installments.