SciSparc Ltd. (NASDAQ: SPRC) has witnessed a remarkable surge on the stock charts, with a notable increase of 60.40% to reach $5.55, as of the latest check during the current trading session. The upswing in SciSParc’s stock value is attributed to a significant strategic equity initiative.
SciSparc (SPRC) revealed in a formal statement that it has entered into a standby equity purchase agreement (SEPA) with YA II PN, Ltd. (“YA”), a fund managed by Yorkville Advisors Global, LP. As per the conditions mentioned in the SEPA, YA has agreed to purchase up to $20 million worth of common shares of SciSparc throughout the following 36 months.
This pledge is still subject to a 4.99% beneficial ownership cap on SciSparc’s share capital. Beginning on the trading day that the Company delivers an advance notice, the acquisition price for the ordinary shares is determined at a 3% discount from the weighted average price of SPRC’s ordinary shares for a period of three consecutive trading days.
SciSparc retains the sole discretion to sell shares to YA intermittently upon issuance of an advance notice. It is noteworthy that YA does not possess the right to mandate the Company to sell any shares. The intended purpose for the proceeds resulting from this potential offering of ordinary shares pursuant to the SEPA is to bolster working capital and address various general corporate needs.
In a parallel strategic move, SciSparc recently assumed the role of lender in a bridge loan agreement with a prominent Israeli vehicle importing company acting as the borrower (referred to as the “Target Company”). Under the terms of the agreement, the Target Company received a bridge loan amounting to $1.4 million.
This transaction followed a previously-announced non-binding letter of intent (LOI), signaling SciSparc’s intent to acquire the Target Company. As disclosed on December 7, 2023, SciSparc is set to acquire 100% ownership of the Target Company and subsequently establish a new wholly-owned Israeli subsidiary. This subsidiary will then merge with and into the Target Company.
Post-acquisition closing, it is anticipated that shareholders of SciSparc will hold approximately 50.01% of the share capital in the resulting combined company. This strategic acquisition is poised to bring substantial value and opportunities for SciSparc as it continues to make strategic inroads in the market.
