TEL AVIV - SciSparc Ltd. (NASDAQ:SPRC), a clinical-stage pharmaceutical company whose stock has surged over 126% year-to-date according to InvestingPro data, announced today that its partner AutoMax Motors Ltd., a prominent automotive importer and distributor in Israel, has received its first shipment of vehicles from Anhui Jianghuai Automobile Group Co., Ltd. (JAC Motors), a recognized Chinese automotive manufacturer. This development is a key step in AutoMax's strategy to introduce JAC Motors' electric vehicles (EVs) to the Israeli market, following the necessary regulatory approvals for direct importation.
The arrival of the shipment allows AutoMax to commence marketing and sales of JAC Motors' EVs in Israel. JAC Motors is known for its focus on sustainable transportation, offering a range of electric passenger and commercial vehicles, which are supported by advanced research and development and innovative battery technologies.
SciSparc has financially supported AutoMax, which the company believes has assisted AutoMax in facilitating its dealings with JAC Motors. The collaboration between SciSparc and AutoMax extends beyond the importation of EVs. InvestingPro analysis shows the company maintains a healthy balance sheet with more cash than debt, though it's currently experiencing rapid cash burn. In April 2024, the two companies entered into a merger agreement, which, if completed, is expected to expand SciSparc's operations into the automotive sector. The successful completion of the merger is subject to customary closing conditions, including the approval of shareholders from both companies.
SciSparc, primarily focused on cannabinoid-based pharmaceuticals, sees this move as a diversification into the automotive industry. The company is currently involved in drug development programs targeting various conditions, including Tourette Syndrome, Alzheimer's disease, autism, and status epilepticus, and owns a controlling interest in a subsidiary that sells hemp seed oil-based products on Amazon.com (NASDAQ:AMZN).
Investors and security holders are advised to read the final registration statement and proxy statement/prospectus regarding the proposed merger, as they contain important information. These documents will be made available by the company once filed with the U.S. Securities and Exchange Commission (SEC). For deeper insights into SciSparc's financial health and future prospects, InvestingPro subscribers have access to over 12 additional exclusive ProTips and comprehensive financial metrics, including detailed profitability forecasts showing expected net income growth this year.
The information reported is based on a press release statement and is intended to provide shareholders and the public with current corporate developments. It does not constitute an offer to sell or a solicitation of an offer to buy any securities.
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