SciSparc Announces Acquisition of Neurothera Labs Inc.
TEL AVIV, Israel — SciSparc Ltd. (Nasdaq: SPRC) proudly announces the successful closing of its acquisition of Neurothera Labs Inc., formerly Miza III Ventures Inc. This strategic move allows SciSparc to not only expand its operations in the realm of central nervous system therapies but also to solidify its position in the pharmaceutical sector.
Understanding the Acquisition Details
As part of the asset and share purchase agreement, SciSparc acquired a controlling interest in Neurothera, a publicly traded company on the TSX Venture Exchange. This acquisition involved the transfer of SciSparc's advanced clinical stage pharmaceutical portfolio along with an approximate 51% equity stake in SciSparc Nutraceuticals Inc. These transfers form part of what is termed the "Target Assets."
Valuation and Enterprise Value
The total enterprise value of Neurothera was evaluated at around US$3.3 million, factoring in a cash position of about US$1 million. This contributed to the Target Assets being valued at approximately US$11.6 million. This strategic financial positioning highlights the promising future for both SciSparc and Neurothera in the healthcare industry.
Key Elements of the Transaction
Upon closing the transaction, SciSparc received 63,300,000 common shares of Neurothera and 4,000,000 common share purchase warrants. Additionally, the agreement allows for up to 48,000,000 contingent rights, providing SciSparc the potential to acquire further shares contingent on achieving specific milestones. This ensures that SciSparc can capitalize on Neurothera’s growth and innovations in the therapeutic space.
Investment Commitment
In alignment with this transaction, SciSparc committed CAD 1,000,000 to Neurothera through an unsecured convertible note. This note will mature on October 22, 2027, and can be converted into common shares at a set price, emphasizing SciSparc's long-term confidence and strategic interest in Neurothera's advancements.
The Future for Neurothera Labs
Following the completion of the acquisition, Neurothera anticipates re-establishing operations in both the pharmaceutical and supplemental sectors. The company has plans to resume trading on the TSXV under the new symbol “NTLX,” which is expected to enhance visibility and attract more investors.
Strategic Advantages
The acquisition not only enhances SciSparc's portfolio but also allows both companies to leverage their strengths. By creating synergies between their respective domains, there's significant potential to innovate new treatment methodologies and broaden the therapeutic reach within the healthcare market.
About SciSparc Ltd.
SciSparc Ltd. is dedicated to the development of innovative therapies targeting rare diseases and disorders of the central nervous system. Leading under the guidance of seasoned professionals, SciSparc is committed to expanding its portfolio with a focus on cannabinoid pharmaceuticals. Through its majority-owned subsidiary, Neurothera Labs Inc., the company is actively progressing multiple drug development programs, including treatments for Tourette syndrome, Alzheimer's disease, autism spectrum disorder, and more.
Frequently Asked Questions
What is the significance of the acquisition for SciSparc?
The acquisition of Neurothera Labs enhances SciSparc's portfolio and strengthens its position in the pharmaceutical sector, especially in treatments for central nervous system disorders.
When will Neurothera resume trading on the TSXV?
Neurothera is expected to resume trading on the TSXV under the symbol “NTLX” shortly after the transaction finalization.
What are the expected future developments for SciSparc?
SciSparc plans to leverage neurothera's capabilities to innovate new treatments and expand its portfolio in the clinical-stage pharmaceutical landscape.
How does the convertible note benefit SciSparc?
The unsecured convertible note allows SciSparc to invest in Neurothera, demonstrating its long-term commitment and potential for further ownership in the company.
What are the key areas of focus for SciSparc?
SciSparc is primarily focused on developing therapies based on cannabinoid pharmaceuticals to address rare diseases affecting the central nervous system.
