SciSparc And AutoMax Motors Scrap Proposed Merger

SciSparc (SPRC) announced on Monday that it has decided to terminate the proposed merger with AutoMax Motors.

SciSparc announced that the decision was mutual, and the merger agreement is null, effective immediately. The two companies also established clear repayment terms for SciSparc’s existing loans to AutoMax, totaling a principal amount of $6.25 million. The companies did not provide a reason for scrapping the proposed merger.

SPRC shares traded 2% higher at the time of writing. Scisparc stated that AutoMax will repay $4.25 million in principal, with interest, in a single lump sum payment on Jan. 1, 2028, and another $2 million in principal, with interest, in monthly installments starting Nov. 20, 2025. All accrued interest will be paid at the outset, the company added.

Late in August, the pharmaceutical company said that its shareholders approved its proposed merger with AutoMax, a parallel vehicle importer in Israel. The two companies entered into a definitive agreement in April 2024, under which SciSparc would acquire 100% of AutoMax’s share capital by way of a reverse merger between SciSparc Merger Sub, a wholly owned subsidiary of the company, and AutoMax, with AutoMax continuing as a wholly owned subsidiary of SciSparc. The proposed merger was aimed at diversifying SciSparc’s portfolio and capitalizing on the expanding electric vehicle market in Israel.

SciSparc is currently focused on a portfolio based on cannabinoid pharmaceuticals. It is developing drugs for the treatment of Tourette Syndrome, Alzheimer’s disease, and Autistic Spectrum Disorders (ASD), among others. 

SPRC stock is down 37% this year but is up approximately 3% over the past 12 months. 

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