Core Viewpoint - SciSparc Ltd. has entered into a loan agreement with AutoMax Motors Ltd. for $2 million to support AutoMax's business expansion into the electric vehicle market, following a merger agreement between the two companies [1][3]. Group 1: Loan Agreement Details - The new loan of $2 million will bear an 8% annual interest rate and will be repaid in equal monthly installments of $50,000 plus interest [2]. - AutoMax has the option for early repayment without penalties, and the interest on the loan will be canceled upon the consummation of the merger agreement [2]. - As collateral for the loan, AutoMax has pledged a first-ranking fixed charge on its subsidiary's shares [2]. Group 2: Merger Agreement - In April 2024, SciSparc and AutoMax signed a merger agreement under which SciSparc will acquire 100% of AutoMax, aiming to expand into the automotive sector [3]. - The merger is subject to customary closing conditions, including shareholder approvals from both companies [3]. Group 3: Company Overview - SciSparc Ltd. is a specialty clinical-stage pharmaceutical company focused on developing therapies for central nervous system disorders, including drug development programs for conditions such as Tourette Syndrome, Alzheimer's disease, pain, and autism spectrum disorder [4]. - The company also has a controlling interest in a subsidiary that sells hemp seed oil-based products on Amazon Marketplace [4].
SciSparc Extends $2 Million Loan to Support AutoMax's Growth Following AutoMax's Entry into Direct Import of JAC Electric Vehicles