SciSparc provides update regarding letter of intent to acquire vehicle importer

SciSparc announced updates regarding the negotiation following the signing of a non-binding letter of intent with a leading vehicle importer company in Israel, on November 22, 2023. According to the new negotiated terms, the Company will acquire 100% of the Target Company and will establish a new wholly-owned Israeli subsidiary, which would in turn merge with and into the Target Company. Following the Acquisition, it is contemplated that SciSparc shareholders will hold approximately 50.01% of the share capital of the post-closing combined company, compared to 20%, as reflected in the previous announcement. The Target Company is a leading vehicle importer in Israel. Its revenues for the first half of 2023 amounted to over $52 million. As a result of the Acquisition, all outstanding shares of the Target Company will be converted into the right to receive ordinary shares of SciSparc and any warrants issued by the Target Company will be converted into the right to receive warrants of SciSparc. Following the closing, it is contemplated the Target Company’s equity holders will hold approximately 49.99% of the Combined Company’s share capital. The Acquisition is subject to the successful completion of due diligence by both parties, the execution of binding definitive agreements with respect to the Acquisition and compliance with any regulatory requirements and approvals, including approvals by the shareholders of SciSparc and the Target Company and certain Israeli court approvals.