SciSparc Stock Soars Pre-Market After Snapping Up Patents For Next-Gen Endoscopy Tech

• The company said it is also acquiring intellectual property rights to the MUSE system, a single-use, innovative endoscopic device.
• The number of shares issued to Xylo would be 19.99% of the issued and outstanding share capital of SciSparc as of the closing date of the transaction, SciSparc said. 
• Scisparc may also issue pre-funded warrants to purchase ordinary shares at its discretion instead of issuing shares, it added.

SciSparc Ltd. (SPRC) on Wednesday said that its majority-owned unit, NeuroThera Labs Inc., signed a binding term sheet to acquire a treasury of patents, trademarks, and intellectual property rights for innovative endoscopic systems and medical cameras from Xylo Technologies Ltd.

Shares of the company jumped as much as 34% in the pre-market session at the time of writing.

About The Rights And Patents

The company said it is also acquiring intellectual property rights to the MUSE system, a single-use, innovative endoscopic device designed for a minimally invasive procedure to treat gastroesophageal reflux disease (GERD). According to SciSparc, the GERD device market is projected to reach $3.03 billion by 2030 from about $2.5 billion in 2024.

In return, SciSparc shall issue to Xylo an amount of ordinary shares of the company. The number of shares issued would be 19.99% of SciSparc's issued and outstanding share capital as of the transaction's closing date, the company said.

Scisparc may also issue pre-funded warrants to purchase ordinary shares at its discretion, rather than issuing shares. However, this is subject to negotiation and the signing of definitive acquisition agreements, the company added.

What Does SciSparc Intend To Do?

Xylo had entered a licensing and distribution agreement with a Shanghai-based medical instruments company in 2019 for commercialization in Greater China.

SciSparc now intends to replicate this model across territories such as North America, Europe and Latin America by pursuing exclusive partnerships with regional distributors to accelerate worldwide commercialization.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around SPRC stock jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘low’ to ‘extremely high’ levels.

SPRC stock is down by 68% this year and by about 49% over the past 12 months.

Also See: Nyxoah SA Stock Rises Pre-Market After CMS Raises Reimbursement For Sleep Disorder Therapy

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