Specialty clinical-stage pharmaceutical company SciSparc Ltd. (NASDAQ:SPRC) has entered into a merger agreement with AutoMax Motors Ltd., a vehicle importer company in Israel. Deal terms not disclosed.
The strategic move entails SciSparc securing full ownership of AutoMax and establishing a fresh subsidiary in Israel that will subsequently merge with AutoMax.
This merger aims to form a new entity with SciSparc shareholders owning slightly more than 50% of its capital, aligning with the company's strategy to seek value-enhancing opportunities. SciSparc's ongoing pharmaceutical operations will continue seamlessly after the merger.
Post-merger, AutoMax shares will convert to SciSparc ordinary share rights, with its stakeholders owning approximately 49.99% of the merged entity, subject to adjustments. SciSparc commits to a minimum of $4.25 million in net cash at deal closure.
Notably, both companies share a chairman Amitai Weiss, indicating a close relationship at the leadership level, underscoring the merger's role in SciSparc's diversification into the automotive industry.
Price Action: SPRC shares are trading higher by 6.88% at $1.79 on Thursday.
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