SciSparc Extends $2 Million Loan to Support AutoMax's Growth Following AutoMax’s Entry into Direct Import of JAC Electric Vehicles
SciSparc (Nasdaq: SPRC) has provided a new $2 million loan to AutoMax Motors to support its business expansion in direct importing of JAC electric vehicles. The loan carries an 8% annual interest rate, repayable in monthly installments of $50,000 plus interest, with an early repayment option without penalties.
This new funding follows previous bridge loans totaling $4.25 million provided as part of a merger agreement signed in April 2024. The interest will be cancelled upon merger completion, with AutoMax continuing principal payments. The loan is secured by a first-ranking fixed charge on AutoMax's subsidiary shares.
The merger agreement, signed in April 2024, will see SciSparc acquire 100% of AutoMax, marking its expansion into the automotive sector. The deal remains subject to customary closing conditions and shareholder approvals from both companies.
SciSparc (Nasdaq: SPRC) ha fornito un nuovo prestito di 2 milioni di dollari a AutoMax Motors per supportare l'espansione dell'attività nell'importazione diretta di veicoli elettrici JAC. Il prestito ha un tasso d'interesse annuo dell'8%, rimborsabile in rate mensili di 50.000 dollari più interessi, con un'opzione di rimborso anticipato senza penali.
Questo nuovo finanziamento segue prestiti ponte precedenti per un totale di 4,25 milioni di dollari forniti nell'ambito di un accordo di fusione firmato ad aprile 2024. Gli interessi saranno cancellati al completamento della fusione, con AutoMax che continuerà i pagamenti del capitale. Il prestito è garantito da un diritto di garanzia di primo rango sulle azioni della sussidiaria di AutoMax.
L'accordo di fusione, firmato ad aprile 2024, prevede che SciSparc acquisisca il 100% di AutoMax, segnando la sua espansione nel settore automobilistico. L'affare è soggetto alle consuete condizioni di chiusura e alle approvazioni degli azionisti di entrambe le aziende.
SciSparc (Nasdaq: SPRC) ha proporcionado un nuevo préstamo de 2 millones de dólares a AutoMax Motors para apoyar su expansión comercial en la importación directa de vehículos eléctricos JAC. El préstamo tiene una tasa de interés anual del 8%, reembolsable en cuotas mensuales de 50,000 dólares más intereses, con una opción de pago anticipado sin penalizaciones.
Este nuevo financiamiento sigue a préstamos puente previos por un total de 4.25 millones de dólares proporcionados como parte de un acuerdo de fusión firmado en abril de 2024. Los intereses se cancelarán al completar la fusión, con AutoMax continuando los pagos del capital. El préstamo está asegurado por un cargo fijo de primer rango sobre las acciones de la subsidiaria de AutoMax.
El acuerdo de fusión, firmado en abril de 2024, verá a SciSparc adquirir el 100% de AutoMax, marcando su expansión en el sector automotriz. El acuerdo sigue sujeto a las condiciones de cierre habituales y a las aprobaciones de los accionistas de ambas empresas.
SciSparc (Nasdaq: SPRC)는 AutoMax Motors 에 200만 달러의 대출을 제공하여 JAC 전기차의 직접 수입 사업 확장을 지원합니다. 이 대출은 연 8%의 이자율을 가지고 있으며, 이자와 함께 월 50,000달러의 할부로 상환되며, 조기 상환 옵션이 제공됩니다.
이번 신규 자금 지원은 2024년 4월에 체결된 합병 계약의 일환으로 제공된 총 425만 달러의 브리지 론에 이어지는 것입니다. 합병 완료 시 이자는 취소되며, AutoMax는 계속해서 원금 상환을 진행합니다. 이 대출은 AutoMax의 자회사 주식에 대한 1순위 고정 담보로 보장됩니다.
2024년 4월에 체결된 합병 계약에 따라 SciSparc는 AutoMax의 100%를 인수하게 되며, 이는 자동차 산업으로의 확장을 의미합니다. 이 거래는 양사의 관례적인 마감 조건과 주주 승인에 따라 진행됩니다.
SciSparc (Nasdaq: SPRC) a accordé un nouveau prêt de 2 millions de dollars à AutoMax Motors pour soutenir son expansion commerciale dans l'importation directe de véhicules électriques JAC. Le prêt a un taux d'intérêt annuel de 8%, remboursable par mensualités de 50 000 dollars plus intérêts, avec une option de remboursement anticipé sans pénalités.
Ce nouveau financement fait suite à des prêts relais précédents totalisant 4,25 millions de dollars fournis dans le cadre d'un accord de fusion signé en avril 2024. Les intérêts seront annulés à l'achèvement de la fusion, AutoMax continuant les paiements du principal. Le prêt est garanti par un droit de gage de premier rang sur les actions de la filiale d'AutoMax.
L'accord de fusion, signé en avril 2024, verra SciSparc acquérir 100 % d'AutoMax, marquant son expansion dans le secteur automobile. L'accord reste soumis aux conditions de clôture habituelles et aux approbations des actionnaires des deux entreprises.
SciSparc (Nasdaq: SPRC) hat ein neues Darlehen in Höhe von 2 Millionen Dollar an AutoMax Motors bereitgestellt, um die Geschäftserweiterung im direkten Import von JAC-Elektrofahrzeugen zu unterstützen. Das Darlehen hat einen jährlichen Zinssatz von 8%, der in monatlichen Raten von 50.000 Dollar zuzüglich Zinsen zurückgezahlt wird, mit einer Möglichkeit zur vorzeitigen Rückzahlung ohne Strafen.
Diese neue Finanzierung folgt auf frühere Brückenfinanzierungen in Höhe von insgesamt 4,25 Millionen Dollar, die im Rahmen eines im April 2024 unterzeichneten Fusionsvertrags bereitgestellt wurden. Die Zinsen werden bei Abschluss der Fusion erlassen, während AutoMax die Tilgungen des Kapitals fortsetzt. Das Darlehen ist durch eine erste, feste Sicherung auf die Anteile der Tochtergesellschaft von AutoMax gesichert.
Der im April 2024 unterzeichnete Fusionsvertrag sieht vor, dass SciSparc 100% von AutoMax erwirbt, was die Expansion in den Automobilsektor markiert. Der Deal unterliegt den üblichen Abschlussbedingungen und der Genehmigung durch die Aktionäre beider Unternehmen.
- Strategic expansion into EV market through AutoMax acquisition
- Secured loan with first-ranking fixed charge collateral
- Interest expenses will be eliminated post-merger completion
- Additional $2M cash outlay increases financial exposure
- Merger completion uncertainty pending shareholder approvals
- Deviation from core pharmaceutical business focus
Insights
SciSparc's $2 million loan to AutoMax, bringing total financing to
This unusual cross-industry merger signals potential concerns about SciSparc's pharmaceutical pipeline. Clinical-stage pharma companies typically focus resources on advancing their drug candidates through clinical trials - pivoting to electric vehicles suggests management may be seeking alternative growth paths due to challenges in their core business.
For investors, this transaction creates a complex hybrid entity operating in two unrelated industries with different expertise requirements, regulatory frameworks, and capital needs. The structure of the deal - providing loans ahead of the merger with interest forgiveness upon completion - indicates SciSparc's strong commitment to completing the acquisition despite potential shareholder resistance.
AutoMax's move to directly import JAC electric vehicles enters them into China's competitive EV export market, where JAC ranks behind leaders like BYD and SAIC. While this provides exposure to the growing EV sector, it also introduces significant operational complexity, supply chain risks, and competitive pressures for a company with no demonstrated expertise in this space.
Current SciSparc shareholders face substantial uncertainty as the company effectively transforms its business model, risk profile, and capital allocation strategy. The transaction structure suggests potential dilution ahead as the company likely needs additional capital to support both businesses.
TEL AVIV, Israel, Feb. 27, 2025 (GLOBE NEWSWIRE) -- SciSparc Ltd. (Nasdaq: SPRC) (the "Company" or "SciSparc"), a specialty clinical-stage pharmaceutical company focusing on the development of therapies to treat disorders of the central nervous system, announced today that it has entered into a loan agreement with AutoMax Motors Ltd. ("AutoMax") to provide a
The loan, bearing an
In April 2024, SciSparc and AutoMax signed a merger agreement under which SciSparc will acquire
About SciSparc Ltd. (Nasdaq: SPRC):
SciSparc Ltd. is a specialty clinical-stage pharmaceutical company led by an experienced team of senior executives and scientists. SciSparc’s focus is on creating and enhancing a portfolio of technologies and assets based on cannabinoid pharmaceuticals. With this focus, the Company is currently engaged in the following drug development programs based on Δ9-tetrahydrocannabinol and/or non-psychoactive cannabidiol: SCI-110 for the treatment of Tourette Syndrome, for the treatment of Alzheimer's disease and agitation; SCI-160 for the treatment of pain; and SCI-210 for the treatment of autism spectrum disorder and status epilepticus. The Company also owns a controlling interest in a subsidiary whose business focuses on the sale of hemp seed oil-based products on Amazon Marketplace.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. For example, SciSparc is using forward-looking statements when it discusses that the funding will support AutoMax's business expansion and closing conditions for the merger, including shareholder approvals from both companies. Since such statements deal with future events and are based on SciSparc’s current expectations, they are subject to various risks and uncertainties related to the Company’s ability to complete the merger on the proposed terms and schedule, including risks and uncertainties related to the satisfaction of the closing conditions related to the merger agreement and risks and uncertainties related to the failure to timely, or at all, obtain shareholder approval for the transaction, and actual results, performance or achievements of SciSparc could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading "Risk Factors" in SciSparc's Annual Report on Form 20-F filed with the SEC on April 1, 2024, and in subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”). Except as otherwise required by law, SciSparc disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date they were made, whether as a result of new information, future events or circumstances or otherwise.
Additional Information and Where You Can Find It
In connection with the proposed transaction between the Company and AutoMax, the Company has filed a preliminary registration statement, which includes a preliminary proxy statement/prospectus, with the SEC. This press release is not a substitute for the registration statement, the proxy statement/prospectus or any other documents that the Company may file with the SEC or send to its shareholders in connection with the proposed transactions. Before making any voting decision, investors and securityholders are urged to read the final registration statement or the proxy statement/prospectus, as applicable, and all other relevant documents filed or furnished or that will be filed with or furnished to the SEC in connection with the proposed transaction as they become available because they will contain important information about the proposed transaction and related matters.
You may obtain free copies of the proxy statement/prospectus and all other documents filed or that will be filed with the SEC regarding the proposed transaction at the website maintained by the SEC at www.sec.gov. Once filed, the final proxy statement/prospectus will be available free of charge on the Company’s website at https://investor.scisparc.com/, by contacting the Company’s Investor Relations at IR@scisparc.com or by phone at +972-3-6167055.
Participants in Solicitation
The Company, AutoMax and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the holders of the Company’s Ordinary Shares in connection with the proposed transaction. Information about the Company’s directors and executive officers is set forth in the Company’s annual report on Form 20-F, for the year ended December 31, 2023, filed with the SEC on April 1, 2024. Other information regarding the interests of such individuals, as well as information regarding AutoMax’s directors and executive officers and other persons who may be deemed participants in the proposed transaction, will be set forth in the final proxy statement/prospectus, which will be filed with the SEC. You may obtain free copies of these documents as described in the preceding paragraph.
Non-Solicitation
This press release will not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Investor Contact:
IR@scisparc.com
Tel: +972-3-6167055
FAQ
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