SciSparc Ltd. (SPRC) is making a strategic shift into medical devices. The clinical-stage pharmaceutical company announced Tuesday it has struck a definitive agreement to acquire a portfolio of patents related to medical endoscopy.
So what exactly is SciSparc buying? The acquisition includes patents, trademarks and related intellectual property tied to endoscopic systems and medical cameras. The centerpiece appears to be the MUSE endoscopic system, which is designed for minimally invasive procedures.
This represents a notable expansion for SciSparc, which currently focuses on clinical-stage pharmaceutical and technology development through its majority-owned subsidiary NeuroThera Labs Inc. The company says the acquisition will extend its presence into the medical device space and help accelerate commercialization plans.
The Commercialization Game Plan
SciSparc plans to start commercializing the acquired technologies as soon as the deal closes, aiming to replicate distribution models that have worked elsewhere. The strategy involves leveraging licensing agreements and regional partnerships to expand market reach across North America, Europe and Latin America.
The financial structure is interesting. Under the agreement, SciSparc will issue ordinary shares to the seller at closing, representing approximately 19.99% of the company's outstanding stock. That's just shy of the 20% threshold that typically triggers shareholder approval requirements. The company also retained the option to issue pre-funded warrants instead of some shares if it chooses.