SPRC - SciSparc to Acquire AutoMax | Benzinga
TEL AVIV, Israel, April 11, 2024 (GLOBE NEWSWIRE) -- SciSparc Ltd. (NASDAQ:SPRC) ("Company" or "SciSparc"), a specialty clinical-stage pharmaceutical company focusing on the development of therapies to treat disorders and rare diseases of the central nervous system, announced today that it signed a merger agreement (the "Agreement") with AutoMax Motors Ltd. ("AutoMax"), a leading vehicle importer company in Israel.
According to the Agreement, the Company will acquire 100% of AutoMax and establish a new wholly-owned Israeli subsidiary, which would in turn merge with and into AutoMax (the "Acquisition"). Following the Acquisition, it is contemplated that SciSparc shareholders will hold together approximately 50.01% of the share capital of the post-closing combined company (the "Combined Company").
The Acquisition follows the Company's announcement in June 2022, in which the Company's board of directors resolved to review potential strategic transactions to maximize shareholder value. The Company's ongoing business operations, including its late-stage pharmaceutical segment, will continue to operate.
As a result of the Acquisition, all outstanding shares of AutoMax will be converted into the right to receive ordinary shares of SciSparc. Following the closing, it is contemplated that AutoMax's equity holders will hold together approximately 49.99%, subject to adjustments, of the Combined Company's share capital. At the closing of the Acquisition, SciSparc has committed to hold at least $4.25 million in net cash.
The Acquisition is subject to various approvals, including compliance with any regulatory requirements, including certain Israeli court approvals and SciSparc and AutoMax shareholder approvals. Mr. Amitai Weiss, the chairman of SciSparc, is also the chairman of AutoMax.
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 THC and/or non-psychoactive CBD: 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 ASD and status epilepticus. The Company also owns a controlling interest in a subsidiary whose business focuses on the sale of hemp seeds oil-based products on Amazon Marketplace.
About AutoMax Motors Ltd.
AutoMax is involved in parallel importation and marketing of various private vehicle products in Israel through ...