SciSparc Ltd. ( SPRC ) said Monday it has entered a framework agreement with AutoMax Motors Ltd. to mutually terminate their planned merger, officially ending a deal that would have expanded the company into Israel’s automotive market.

The Tel Aviv-based drug developer stated that the October 6, 2025, agreement outlines repayment terms for prior loans extended to AutoMax and supersedes the earlier merger pact. Both companies agreed to end all merger-related obligations and settle financial commitments.

Loan Repayment Terms

Under the new framework, AutoMax will repay $4.25 million, plus 9% annual interest, compounded yearly, in a single payment by January 1, 2028. A separate $2 million loan will be repaid in monthly installments of $60,000, beginning November 20, 2025, with an 8% annual interest rate and a one-time payment of $114,523 in accrued interest.

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Background on the Merger

The companies first agreed to merge in April 2024, with plans for SciSparc ( SPRC ) to acquire AutoMax through a reverse merger structure. AutoMax shareholders approved the deal earlier in 2025, and SciSparc ( SPRC ) investors followed in August. The transaction was intended to diversify SciSparc’s operations and add exposure to Israel’s parallel vehicle import and electric vehicle markets.

Strategic Focus After Termination

SciSparc ( SPRC ) had previously provided bridge financing to AutoMax in 2024 and early 2025 to support its import business. While the merger has now been canceled, SciSparc ( SPRC ) stated that it will continue to focus on its pipeline of treatments for central nervous system disorders. The company has also launched initiatives to advance drug discovery with quantum algorithms as part of its long-term innovation strategy.

Related ETFs: iShares Biotechnology ETF and SPDR S&P Biotech ETF .

Price Action: SPRC shares were trading higher by 2.32% to $4.86 premarket at last check Monday.

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