TEL AVIV - SciSparc Ltd. (NASDAQ: SPRC), a clinical-stage pharmaceutical company specializing in central nervous system disorders, has provided an additional $1.85 million bridge loan to AutoMax Motors Ltd., as per the second amendment to their January 14, 2024, agreement. This increment brings the total loan amount to $4.25 million.
The loan is secured by a first ranking fixed charge on shares of AutoMax's subsidiary, AutoMax Leasing Ltd. The bridge loan negates the need for previously agreed closing financing in the merger plan between SciSparc and AutoMax, as the loan amount equals the financing commitment.
AutoMax, through AutoMax Leasing, has a direct import agreement with JAC Motors, a significant player in China's automotive industry. JAC Motors manufactures a variety of vehicles and is involved in sectors such as ride-sharing and financial services.
SciSparc is known for its focus on cannabinoid-based pharmaceuticals, with ongoing drug development programs for conditions including Tourette Syndrome, Alzheimer's disease, autism, and status epilepticus. The company also has a controlling interest in a subsidiary that sells hemp seed oil products on Amazon (NASDAQ:AMZN) Marketplace.
This press release includes forward-looking statements regarding the expected completion of the merger agreement. However, the completion of the merger and related transactions remains subject to various conditions and uncertainties.
Investors should note that this article is based on a press release statement and should read any registration statement, proxy statement, and other relevant documents filed with the SEC regarding the proposed transaction for more detailed information.
In other recent news, SciSparc Ltd. has seen significant developments in its business operations. The clinical-stage pharmaceutical company has signed an exclusive patent license agreement with Polyrizon Ltd. for the out-licensing of its SCI-160 program aimed at treating pain. The terms of the agreement could see SciSparc receive $3 million in Polyrizon securities and potential milestone fees of approximately $3 million in cash, along with subsequent royalties.
In addition, SciSparc has initiated a clinical trial for its proprietary SCI-210 therapy, aimed at treating symptoms of autism spectrum disorder in children. The trial is currently underway at Soroka Medical Center in Israel. The company's strategic plan is to first commercialize SCI-210 in the Israeli market, followed by other countries, subject to regulatory approvals.
Moreover, SciSparc and AutoMax Motors Ltd. are moving forward with their merger plans, following approval from the Jerusalem District Court for AutoMax to hold special shareholder meetings. An addendum has been signed to extend the deadline for finalizing the merger from August 30, 2024, to November 30, 2024.
In collaboration with Clearmind Medicine Inc., SciSparc has also reported promising results from a joint study aimed at combating obesity and metabolic syndrome. The study demonstrated significant weight loss in mice, improved glucose metabolism, and increased energy expenditure.
Furthermore, the company has appointed Professor Nir Peled, a renowned oncologist, to the scientific advisory board of its cancer-focused venture, MitoCareX Bio Ltd. Professor Peled's appointment adds significant expertise to MitoCareX, which is engaged in the development of therapeutics targeting the mitochondrial SLC25 protein family.
InvestingPro Insights
As SciSparc Ltd. (NASDAQ: SPRC) navigates its strategic financial moves, including the bridge loan to AutoMax Motors Ltd., investors may benefit from a closer look at the company's financial health and market performance. According to InvestingPro data, SciSparc holds a market capitalization of $1.02 million, which provides a snapshot of the company's size in the competitive pharmaceutical industry.
An InvestingPro Tip notes that SciSparc holds more cash than debt on its balance sheet, which is a positive sign for stakeholders looking for financial stability in their investments. Additionally, the company's net income is expected to grow this year, suggesting potential for financial improvement and a more robust fiscal position in the near future.
However, investors should be aware of some challenges that SciSparc faces. The company is quickly burning through cash and analysts anticipate a sales decline in the current year. Despite these concerns, SciSparc's liquid assets exceed its short-term obligations, indicating an ability to meet immediate financial liabilities.
On the market performance front, SciSparc is trading near its 52-week low, with the price having fallen significantly over the last year. The InvestingPro Fair Value estimate for SciSparc is currently at $0.57 USD, which may provide an indication of the stock's potential value compared to its recent trading price of $0.32 USD.
For investors seeking a deeper analysis of SciSparc's financial metrics and market performance, additional InvestingPro Tips are available, offering valuable insights that can guide investment decisions. To explore these further, visit https://www.investing.com/pro/SPRC, where you can find a comprehensive set of tips tailored to SciSparc's financial landscape.
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