SciSparc extends $2M loan to support AutoMax growth

SciSparc (SPRC)has entered into a loan agreement with AutoMax Motors to provide a $2 million loan. The funding will support AutoMax’s business expansion following its entry into the direct import of Anhui Jianghuai Automobile Group electric vehicles. The New Loan is in addition to previous bridge loans in an aggregate amount of $4.25 million. The Previous Loans were provided in lieu of SciSparc’s obligation to provide a $4.25 million closing financing, in accordance with the merger agreement signed between the parties. The loan, bearing an 8% annual interest rate, will be repaid in equal monthly installments of $50,000 and interest, with AutoMax retaining the option for early repayment without penalties. The interest on the loan will be cancelled as of the consummation of the merger agreement, and thereafter AutoMax shall continue to make monthly payments towards the principal amount of the loan. As collateral, AutoMax has pledged a first-ranking fixed charge on its subsidiary’s shares. In April 2024, SciSparc and AutoMax signed a merger agreement under which SciSparc will acquire 100% of AutoMax, aiming to expand into the automotive sector. The merger is subject to customary closing conditions, including shareholder approvals from both companies.