SciSparc advances $1.85M loan to AutoMax

SciSparc had entered into a second amendment to that certain bridge loan agreement, dated January 14, 2024, and as amended on June 9, 2024, with AutoMax Motors. Pursuant to the Second Amendment, the Company extended an additional loan in the amount of $1.85M to AutoMax under terms similar to the Bridge Loan Agreement, bringing the total bridge loan amount to $4.25M. 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 $4.25M, less any amount owed by AutoMax to the Company under any loan agreement between the parties. As a result of AutoMax receiving the Loan Amount, no Closing Financing will take place. AutoMax has signed, through its wholly owned subsidiary Automax Leasing, a direct import agreement with Anhui Jianghuai Automobile Group.