SciSparc's Merger with AutoMax Approved by Shareholders, Set to Diversify into Automotive Sector

SciSparc shareholders approve merger with AutoMax Motors, acquiring 100% ownership of the combined entity. The merger allows SciSparc to diversify into the automotive sector, capitalizing on the growing electric vehicle market in Israel. Completion of the merger is contingent upon Israeli court approval.

SciSparc Ltd. (Nasdaq: SPRC), a specialty clinical-stage pharmaceutical company, has seen its shareholders approve a strategic merger with AutoMax Motors Ltd., a leading parallel vehicle importer in Israel. The merger, which aligns with SciSparc's long-term strategy to diversify its portfolio, will see the acquisition of 100% of AutoMax's share capital through a reverse merger [1].

Under the terms of the merger agreement, entered on April 11, 2024, and amended as needed, SciSparc will acquire AutoMax through its subsidiary SciSparc Merger Sub Ltd. AutoMax will continue as a wholly-owned subsidiary of the combined entity. Following the completion of the merger, SciSparc shareholders are expected to hold approximately 50.01% of the combined company’s share capital [1].

The merger is a significant step towards enhancing shareholder value by expanding SciSparc’s operations into the automotive sector. AutoMax's operations include the import and distribution of Anhui Jianghuai Automobile Group Corp. Ltd. (JAC) electric vehicles and other vehicle categories. SciSparc has supported AutoMax’s growth with financial assistance, including a $4.25 million bridge loan in 2024 and an additional $2 million loan in February 2025 [1].

The proposed merger aligns with SciSparc's long-term strategy to diversify its portfolio and capitalize on the expanding electric vehicle market in Israel. The closing of the merger is subject to customary closing conditions, including shareholder approvals from both companies and Israeli court approval [1].

The special meetings of AutoMax's shareholders and of AutoMax's shareholders who are not controlling shareholders or SciSparc, to vote on the approval of the Merger, will be held on August 28, 2025 [1]. SciSparc's stock is currently trading at $4.59 on the Nasdaq, up 7.03% in the pre-market hours following the announcement [2].

References:
[1] https://finance.yahoo.com/news/scisparc-shareholders-approve-merger-leading-104500943.html
[2] https://www.nasdaq.com/articles/scisparc-shareholders-approve-proposed-merger-israel-based-automax-motors