707 Cayman Holdings Limited (NASDAQ:JEM) (“707” or the “Company”), a Hong Kong-based company that sells quality apparel products and provides supply chain management solutions, today announced that it has entered into a non-binding Term Sheet to acquire Crucial Innovation Inc. (“CINV”), an integrated pharmaceutical botanical therapeutics company. The proposed transaction remains subject to customary closing conditions, including satisfactory due diligence, delivery of PCAOB-audited financial statements, an independent fairness opinion where required, execution of definitive agreements and applicable corporate, shareholder, regulatory and Nasdaq approvals.
The proposed acquisition would represent a significant strategic expansion for 707 into the regulated pharmaceutical and botanical therapeutics sector. By combining CINV’s vertically integrated pharmaceutical platform with JEM’s Nasdaq-listed infrastructure and access to the U.S. capital markets, the parties intend to create a platform capable of accelerating international growth, supporting future acquisitions and building long-term shareholder value.
Subject to the execution of definitive agreements and satisfaction of applicable closing conditions, the proposed transaction is expected to be supported by US$10.25 million of committed financing led by GeoNova Holdings together with its co-investors. The financing is intended to provide transaction and growth capital in connection with the proposed combination. The final financing terms, capital structure, valuation, consideration and allocation of proceeds will be set out in the definitive agreements and disclosed as required.
GeoNova Holdings is an Abu Dhabi Global Market (ADGM)-based investment group focused on principal investments and special situations across private and public markets.