SciSparc, AutoMax Motors mutually agree to terminate merger

SciSparc (SPRC)announced the entry into a framework agreement for mutual termination of merger, dated October 6, 2025, by and between the company, AutoMax Motors and SciSparc Merger Sub Ltd. This agreement outlines key steps to resolve prior commitments and establish clear repayment terms for the company’s outstanding loans to AutoMax. Mutual Termination of Merger Agreement: The parties have mutually agreed to terminate the Agreement and Plan of Merger, dated April 10, 2024, as amended, in accordance with Section 9.1(a) thereof. Effective immediately, the Merger Agreement is null and void, with no further force or effect. Repayment of $4.25 Million Loan: AutoMax will repay the full $4.25 million principal plus 9% per annum interest, compounded annually, in a single lump-sum payment on January 1, 2028, under the terms of the loan agreement dated January 14, 2024, as amended. Repayment of $2.0 Million Loan: AutoMax will repay the $2.0 million principal in monthly installments of $60,000 each starting November 20, 2025, plus 8% per annum interest, compounded annually up to each payment date. Additionally, all accrued interest from the loan’s effective date (February 24, 2025) through November 20, 2025, totaling $114,523, will be paid at the outset.