Sativus Tech Corp. announced that its subsidiary, Saffron Tech has signed a non-binding LOI with Naveh Pharma. 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. 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.

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.