SciSparc Boosts AutoMax with $1.85 Million Loan Venture

SciSparc Supports AutoMax with Additional Loan

SciSparc Ltd., a clinical-stage pharmaceutical innovator focusing on treatments for central nervous system disorders, has taken a significant step in its partnership with AutoMax Motors Ltd. This comes as the company announced an additional loan of $1.85 million, marking a total of $4.25 million extended under their bridge loan agreement.

Details of the Loan Agreement

This recent amendment to their existing loan agreement showcases a continuing commitment between SciSparc and AutoMax. The terms of the second amendment ensure that AutoMax has structured a first ranking fixed charge security interest on the shares of its entirely-owned subsidiary, AutoMax Leasing Ltd., thus securing the loan provided.

The Background of the Agreement

The Merger Agreement, reached earlier this year, outlines that SciSparc agreed to provide AutoMax with a substantial financing package, but with the adjustments from the new loan, a direct transfer of financing will not proceed. This strategic decision emphasizes the confidence SciSparc has in AutoMax's operational capabilities and future potential.

New Ventures with JAC Motors

AutoMax is also making strides in the automotive industry by signing a direct import agreement with Anhui Jianghuai Automobile Group Co., Ltd. (commonly known as JAC Motors), a prominent Chinese manufacturer. This partnership aims to expand AutoMax's offerings significantly by including a wide range of vehicles, which will enhance their market presence.

About SciSparc Ltd.

SciSparc Ltd. is characterized by an experienced team devoted to advancing cannabinoid-based pharmaceuticals. With innovative drug development programs targeting conditions like Tourette's syndrome and Alzheimer's disease agitation, SciSparc is committed to enhancing its portfolio. The company also holds a controlling stake in a subsidiary focused on hemp seed oil products available through popular online marketplaces.

Implications for Investors and Stakeholders

The strategic loan to AutoMax is expected to catalyze growth, presenting an attractive opportunity for investors. The collaboration not only positions SciSparc as a crucial player in pharmaceutical development but also aligns with emerging trends in cross-industry partnerships. Such moves are significant for stakeholders as they indicate confidence in the sustainability and profitability of both companies.

Looking Towards the Future

Both companies are poised for an exciting period as they navigate their respective industries. The recent developments signal robust opportunities for growth, enhancing shareholder value and positioning them advantageously within the markets. As SciSparc propels forward with these initiatives, their future endeavors are anticipated to yield promising outcomes that align with their strategic vision.

Frequently Asked Questions

What is the main purpose of the $1.85 million loan from SciSparc?

The loan is aimed at supporting AutoMax in its business operations and expansion efforts, particularly following its agreement with JAC Motors.

What conditions were attached to the loan given to AutoMax?

AutoMax provided a first ranking fixed charge security interest on its shares in AutoMax Leasing Ltd. as part of the loan conditions.

How does the agreement with JAC Motors benefit AutoMax?

The agreement allows AutoMax to import a diverse range of vehicles, thereby boosting its product offerings and market competitiveness.

What sectors is SciSparc focusing on with its pharmaceutical development?

SciSparc primarily focuses on disorders related to the central nervous system, including conditions such as Tourette syndrome and Alzheimer's disease.

Where can investors find additional information regarding the proposed transaction?

Investors can access detailed information about the transaction through filings with the SEC and on SciSparc’s website.

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