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TEL AVIV - SciSparc Ltd. (NASDAQ:SPRC) announced Wednesday it has signed a binding term sheet to acquire patents, trademarks and intellectual property rights for endoscopic systems and medical cameras from Xylo Technologies Ltd. The micro-cap company, with a market capitalization of just $3.96 million, appears undervalued according to InvestingPro data, despite its shares falling over 62% in the past six months.
The acquisition includes the MUSE system, a single-use endoscopic device designed for treating gastroesophageal reflux disease (GERD) through minimally invasive procedures.
According to the terms of the agreement, SciSparc will issue to Xylo ordinary shares representing 19.99% of SciSparc’s outstanding share capital upon closing. The company may alternatively issue pre-funded warrants to purchase ordinary shares at its discretion.
SciSparc plans to pursue licensing and distribution partnerships in North America, Europe, and Latin America, following Xylo’s existing commercialization model in Greater China. Xylo previously secured a $3 million upfront payment through a 2019 licensing agreement with a Shanghai-based medical instruments company.
The global GERD device market was valued at approximately $2.5 billion in 2024 and is projected to reach $3.03 billion by 2030, growing at a compound annual growth rate of 3.24%, according to a May 2025 market research report by MarkNtel Advisors.
SciSparc, through its majority-owned subsidiary NeuroThera Labs Inc., is primarily engaged in clinical-stage pharmaceutical developments focused on cannabinoid pharmaceuticals.
The acquisition remains subject to negotiating and signing definitive agreements between the parties, according to the press release statement.
In other recent news, SciSparc Ltd. has been actively involved in several strategic initiatives. The company announced the acquisition of patents, trademarks, and intellectual property rights for the MUSE endoscopic system from Xylo Technologies Ltd. Additionally, SciSparc has secured a controlling interest in Neurothera Labs Inc., acquiring approximately 75% of the company, with the potential to increase this stake to 84% under certain conditions. This transaction involved transferring SciSparc’s clinical-stage pharmaceutical portfolio and a 51% stake in SciSparc Nutraceuticals to Neurothera.
Furthermore, SciSparc has launched a new initiative in quantum computing, focusing on 3D protein modeling to enhance drug discovery. This program, approved by the board of directors, aims to improve the accuracy of predicting protein structures and their interactions with ligands. In another significant move, SciSparc entered into a definitive agreement to acquire a controlling interest in Miza III Ventures Inc., transferring its advanced clinical-stage pharmaceutical portfolio and its equity stake in SciSparc Nutraceuticals to Miza in exchange for common shares and contingent rights. These developments reflect SciSparc’s strategic efforts to expand its technological and pharmaceutical capabilities.
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