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TEL AVIV - SciSparc Ltd. (NASDAQ:SPRC) announced Monday it has signed a binding term sheet to acquire patents, trademarks and intellectual property rights for innovative endoscopic systems and medical cameras from Xylo Technologies Ltd. The micro-cap company, with a market capitalization of just $3.57 million, is making this strategic acquisition despite burning through cash rapidly, according to InvestingPro data.
The acquisition primarily involves the MUSE system, a single-use endoscopic device designed for transoral fundoplication procedures that treat gastroesophageal reflux disease (GERD).
According to the terms outlined in the binding term sheet, SciSparc will issue 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 across North America, Europe, and Latin America, following Xylo’s existing commercialization model in Greater China. In 2019, Xylo secured a $3 million upfront payment through a 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 development focused on cannabinoid pharmaceuticals.
The transaction remains subject to negotiation and signing of definitive agreements between the parties, according to the company’s press release statement.
In other recent news, SciSparc Ltd. announced the acquisition of patents and intellectual property for innovative endoscopic systems, including the MUSE system, from Xylo Technologies Ltd. The MUSE system is designed for minimally invasive treatment of gastroesophageal reflux disease (GERD). SciSparc plans to commercialize this technology globally through exclusive partnerships with regional distributors. Additionally, SciSparc has acquired a controlling interest in Neurothera Labs Inc., transferring its clinical-stage pharmaceutical portfolio and a 51% stake in SciSparc Nutraceuticals as part of the deal. This acquisition gives SciSparc approximately 75% ownership in Neurothera, with the potential to increase to 84% under certain conditions. Furthermore, the company has launched an initiative focused on 3D protein modeling using quantum computing technology. This program aims to enhance drug discovery by improving the accuracy of protein structure predictions. These developments highlight SciSparc’s strategic moves in expanding its technological and pharmaceutical capabilities.
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