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Investing.com -- SciSparc Ltd. (NASDAQ:SPRC) stock surged 26.8% in premarket trading Wednesday after the clinical-stage pharmaceutical company announced it signed a binding term sheet to acquire patents and intellectual property for innovative endoscopic systems, including the MUSE™ system, from Xylo Technologies Ltd.
The MUSE™ system is a single-use endoscopic device designed for transoral fundoplication, a minimally invasive procedure to treat gastroesophageal reflux disease (GERD). SciSparc plans to pursue global commercialization through exclusive partnerships with regional distributors, following Xylo’s successful model in Greater China that generated a $3 million upfront payment.
Under the agreement, SciSparc will acquire Xylo’s complete portfolio of patents, trademarks, know-how, and related intellectual property rights primarily associated with the MUSE™ system. In exchange, SciSparc will issue ordinary shares representing 19.99% of its outstanding share capital to Xylo upon closing, with the option to issue pre-funded warrants instead of shares.
The acquisition positions SciSparc to enter the growing GERD device market, which according to MarkNtel Advisors is valued at approximately $2.5 billion in 2024 and projected to reach $3.03 billion by 2030, growing at a CAGR of 3.24%.
SciSparc intends to replicate Xylo’s licensing and distribution model across North America, Europe, and Latin America to accelerate commercialization and develop new revenue streams.
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