SciSparc Reveals Non-Binding LoI To Merge With Vehicle Importer In Israel

(RTTNews) - SciSparc Ltd. (SPRC) Wednesday announced the signing of a non-binding letter of intent to merge with a leading vehicle importer company in Israel.

Upon Closing, the combined company shall transfer not less than $3 million in cash to the target company.

Through the reverse triangular merger, SciSparc will establish a new wholly-owned Israeli subsidiary, which would in turn merge with and into the target company, leaving the target company as the surviving company. Tthe target company's equity holders will hold approximately 80 percent of the combined Company's share capital.

Further, the specialty clinical-stage pharma plans to transfer its pharmaceutical activities to a separate legal entity or NewCo.

SciSparc said it will explore the possible distribution of NewCo shares as dividend in kind to its shareholders.

Following the closing of the Merger, the combined company will continue to trade on the Nasdaq under a new name.

As a result of the merger, 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.

Currently, in the pre-market session, SPRC is at $6.37, up 26.71 percent from the previous close of $6.21 on a volume of 134,495.