SciSparc Ltd. (NASDAQ: SPRC) shares lost ground Wednesday, after it announced that it had entered into a second amendment to that certain bridge loan agreement, dated January 14, and as amended on June 9, with AutoMax Motors Ltd.
SciSparc calls itself a specialty clinical-stage pharmaceutical company focusing on the development of therapies to treat disorders and rare diseases of the central nervous system.
Pursuant to the Second Amendment, the Company extended an additional loan in the amount of $1.85 million to AutoMax under terms similar to the Bridge Loan Agreement, bringing the total bridge loan amount to $4.25 million. In consideration for the Loan Amount, AutoMax established a first ranking fixed charge security interest on AutoMax’s shares of its wholly-owned subsidiary AutoMax Leasing Ltd in favor of the Company.
The Company, AutoMax and SciSparc Merger Sub Ltd., an Israeli limited company and wholly-owned subsidiary of the Company, previously entered into an Agreement and Plan of Merger, dated April 10, 2024, according to which, among other things, the Company agreed to deliver to AutoMax an amount of $4.25 million, less any amount owed by AutoMax to the Company under any loan agreement between the parties (the “Closing Financing”). As a result of AutoMax receiving the Loan Amount, no Closing Financing will take place.
SPRC opened Wednesday trading was down 0.65 cents, or 2.1% to 31 cents.
