TEL AVIV - SciSparc Ltd. (NASDAQ:SPRC), a clinical-stage pharmaceutical company, has announced a key development in its merger process with AutoMax Motors Ltd., a vehicle company. The Jerusalem District Court has given the green light for AutoMax to hold special shareholder meetings to vote on the proposed merger with SciSparc.
The court's decision follows AutoMax's request to convene a special meeting for shareholder approval of the merger. Additionally, SciSparc disclosed that an addendum to the original merger agreement has been signed, extending the deadline for finalizing the merger from August 30, 2024, to November 30, 2024.
SciSparc specializes in developing treatments for central nervous system disorders and rare diseases, with a portfolio that includes cannabinoid-based pharmaceuticals. The company is working on several drug development programs, such as SCI-110 for Tourette Syndrome, SCI-160 for pain management, and SCI-210 for autism and status epilepticus.
The merger with AutoMax, if consummated, is subject to certain conditions, including shareholder approval and the satisfaction of other closing conditions outlined in the merger agreement. Both companies have expressed their intentions to proceed with the merger within the newly agreed-upon timeframe.
The press release from SciSparc contains forward-looking statements, indicating future plans and expectations, which are inherently subject to risks, uncertainties, and potential changes based on various factors. These statements include the anticipated approval and completion of the merger between SciSparc and AutoMax.
Investors are reminded that this information is based on a press release statement and that the merger's completion is not guaranteed. It is subject to the approval of AutoMax's shareholders and the fulfillment of other closing conditions. SciSparc's involvement in the pharmaceutical industry is focused on drug development programs that leverage cannabinoid-based compounds, with ongoing projects aimed at addressing a variety of medical conditions.
The company's progress in the merger with AutoMax is a significant step in its corporate development, although the outcome and future implications for both SciSparc and AutoMax remain contingent on the forthcoming shareholder meetings and subsequent developments.
In other recent news, SciSparc Ltd. and Clearmind Medicine Inc. have reported promising results from a joint study aimed at combating obesity and metabolic syndrome. The research, which combined SciSparc's Palmitoylethanolamide (PEA) with Clearmind's psychoactive molecule MEAI, demonstrated significant weight loss in mice, improved glucose metabolism, and increased energy expenditure. The collaboration has also led to multiple patent applications for treatments of addictions, obesity, and metabolic syndrome.
In a separate development, SciSparc has signed a non-binding letter of intent to out-license its SCI-160 program for pain treatment to an undisclosed biotech firm. This move allows SciSparc to focus on its primary pharmaceutical endeavors, including late-stage programs targeting Alzheimer's disease, Tourette syndrome, and autism.
Meanwhile, SciSparc has received a notice from the Nasdaq Stock Market for non-compliance with the exchange's minimum bid price requirement. The company has been given 180 days to meet the minimum bid price criterion.
Furthermore, SciSparc announced its intent to spin off its advanced clinical stage pharmaceutical portfolio into Miza III Ventures Inc. The deal, yet to be finalized, values SciSparc's assets at approximately $11.6 million.
Lastly, SciSparc has secured a European patent titled "Compositions and Methods of Potentiating Antimicrobials", which combines antibiotics with cannabinoids to improve the effectiveness of antimicrobials. These recent developments underscore SciSparc's ongoing efforts in cannabinoid-based pharmaceuticals and its commitment to global innovation protection.
InvestingPro Insights
In light of SciSparc Ltd.'s recent developments regarding its potential merger with AutoMax Motors Ltd., investors may find the following InvestingPro data and tips to be of particular interest:
InvestingPro data shows that SciSparc Ltd. currently holds a market capitalization of $1.14 million USD. Despite a notable revenue growth of 113.73% over the last twelve months as of Q4 2023, the company has experienced a quarterly revenue decline of 32.67% in Q4 2023. This juxtaposition of annual growth against a quarterly decline may indicate volatility in SciSparc's financial performance, which could be a factor for investors to consider in the context of the proposed merger.
Additionally, the company's stock has faced significant challenges, with a one-month price total return of -50.8% and a six-month price total return of -90.35%. The price of SciSparc's stock has also fallen to 2.27% of its 52-week high, reflecting a considerable decrease in investor confidence.
InvestingPro Tips highlight that SciSparc holds more cash than debt on its balance sheet and that net income is expected to grow this year. These elements suggest a degree of financial stability and potential for future profitability, which could be vital considerations for shareholders evaluating the merger with AutoMax. On the other hand, the company is quickly burning through cash and has been unprofitable over the last twelve months, which may raise concerns about its financial sustainability.
For those interested in a deeper analysis, InvestingPro offers additional tips on SciSparc Ltd., which can be found at https://www.investing.com/pro/SPRC. The full suite of InvestingPro Tips includes insights on sales expectations, stock performance, and valuation metrics that could prove invaluable for shareholders and potential investors as they navigate the implications of the SciSparc-AutoMax merger.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.