SciSparc Acquires 19.99% Stake in Xylo's Patent Portfolio for Innovative Medical Systems
SciSparc (SPRC), through its majority-owned subsidiary NeuroThera Labs, recently announced the signing of a binding term sheet to acquire treasury of patents, trademarks and intellectual property rights for innovative endoscopic systems and medical cameras, including the MUSE system, from Xylo Technologies (XYLO). The MUSE system is a single-use, innovative endoscopic device designed for transoral fundoplication, a minimally invasive procedure to treat gastroesophageal reflux disease. Building on Xylo 's successful commercialization in Greater China through licensing and distribution agreement with a Shanghai-based medical instruments company in 2019, of which Xylo received $3M up front, SciSparc seeks to replicate this proven model across high-growth territories, such as North America, Europe and Latin America, by pursuing similar exclusive partnerships with leading regional distributors to accelerate global commercialization and unlock substantial revenue streams. Under the terms of the binding term sheet, SciSparc will acquire the complete portfolio of patents, trademarks, know-how, and related intellectual property rights, mainly associated with the MUSE system, from Xylo. Subject to negotiating and signing definitive agreements for the acquisition, in consideration for these acquired assets, SciSparc shall issue to Xylo, upon the closing of definitive agreements, an amount of ordinary shares of the Company, which shall represent as of the Closing date, 19.99% of the issued and outstanding share capital of SciSparc. SciSparc may elect at its sole discretion to issue, in lieu of the Issued Shares, pre-funded warrants to purchase ordinary shares.
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- Transaction Overview: SciSparc's majority-owned NeuroThera Labs has signed a share purchase agreement to acquire approximately 54.01% of CliniQuantum's shares for about $9.45 million, with the transaction expected to close within 30 days, marking a strategic expansion into quantum technology.
- Share Payment Structure: NeuroThera will issue 56,600,000 common shares to the Selling Shareholders, who may also receive up to $2.5 million in earn-out payments based on CliniQuantum's patent applications and fundraising achievements, further incentivizing innovation.
- Technological Innovation Potential: CliniQuantum focuses on leveraging quantum computing to enhance clinical trials, aiming to accelerate research by processing complex datasets, and this acquisition will strengthen SciSparc's competitive edge in the pharmaceutical industry and drive cutting-edge product development.
- Future Outlook: The transaction is anticipated to close by March 31, 2026, providing SciSparc an opportunity to enhance its market position in treating central nervous system disorders and achieve long-term growth through technological integration.
- Patent for Innovative Therapy: Clearmind Medicine Inc. has announced an international patent application for a novel therapy combining MEAI and Palmitoylethanolamide, aimed at treating obesity and metabolic dysfunction-associated steatotic liver disease, potentially benefiting over 890 million obese adults worldwide.
- Significant Market Potential: The global weight loss drugs market was valued at approximately $37 billion in 2025 and is projected to reach $226 billion by 2035, indicating a strong demand for innovative alternatives, positioning Clearmind's new therapy to capture a share of this rapidly growing market.
- Strengthened Partnerships: The development of this therapy is bolstered by collaboration with NeuroThera Labs Inc., integrating Clearmind's MEAI platform with PEA to offer a safer and more cost-effective treatment option compared to GLP-1 agonists, enhancing the company's competitive edge in the biotech sector.
- Strategic Development Focus: CEO Dr. Adi Zuloff-Shani emphasized the company's commitment to developing innovative therapies to address underserved metabolic and neurological health issues, further solidifying its leadership position in the biotechnology industry.

- New Drug Approval: Sanofi's Teizeild receives EU approval as the first disease-modifying therapy for Stage 2 Type 1 Diabetes, demonstrating a median delay of 48.4 months to Stage 3 T1D, significantly enhancing patient quality of life and strengthening the company's competitive position in diabetes treatment.
- FDA Approval: Fortress Biotech's ZYCUBO gains FDA approval as the first treatment for Menkes Disease, showing nearly an 80% reduction in mortality risk when used early, laying a solid foundation for future market expansion and revenue growth.
- Acquisition Deal: Boston Scientific's $14.5 billion acquisition of Penumbra reflects its strategic expansion in interventional therapies, expected to enhance its leadership in vascular treatments and drive future revenue growth.
- Clinical Trial Progress: Creative Medical's CELZ-201 shows significant improvement in 79% of patients in the ADAPT trial for chronic lower back pain, indicating the therapy's clinical potential and likely attracting further investment and partnership opportunities.
- Patent Acquisition: SciSparc announced its definitive agreement to acquire a portfolio of patents and trademarks related to endoscopic systems and medical cameras, which is expected to enhance its presence in the medical device sector and facilitate expansion into new markets.
- Commercialization Strategy: The company plans to begin commercializing the acquired technologies immediately upon closing the deal, aiming to accelerate market penetration by replicating existing successful distribution models, particularly in North America, Europe, and Latin America.
- Equity Issuance Terms: Under the agreement, SciSparc will issue ordinary shares representing approximately 19.99% of its outstanding stock to the seller at closing, with the potential to issue pre-funded warrants to optimize its capital structure as needed.
- Expected Closing Timeline: SciSparc anticipates closing the acquisition by March 8, 2026, contingent upon satisfying customary conditions, including regulatory approvals, which will provide a significant opportunity for the company to enter new medical segments.
- Compliance Risk Notification: Nasdaq has notified SciSparc that it failed to maintain the minimum stockholders' equity requirement of $2.5 million, with current equity reported at negative $81,000, indicating severe financial challenges for the company.
- Plan Submission Deadline: Under Nasdaq rules, SciSparc must submit a compliance restoration plan by February 26, 2026, and if accepted, may receive an extension of up to 180 days to demonstrate compliance, impacting the company's future listing status.
- Future Compliance Expectations: SciSparc anticipates regaining compliance by December 31, 2025, through proceeds from the $4.2 million debenture conversion in August 2025 and a registered direct offering completed in November 2025, reflecting confidence in financial recovery.
- Stock Price Fluctuation: Following the announcement, SciSparc's stock price fell by 2.05% to $1.43, indicating market concerns regarding the company's compliance capabilities, which may also affect investor confidence and future financing opportunities.
- Patent Grant: SciSparc's majority-owned NeuroThera has received a patent in Israel for its proprietary combination of opioids and N-acylethanolamines, aimed at enhancing opioid efficacy while reducing side effects, marking a significant step in strengthening global intellectual property protection.
- Market Potential: According to The Business Research Company, the global market for opioids is projected to reach approximately $5.5 to $5.7 billion in 2024, and NeuroThera's new technology could provide safer and more effective alternatives, addressing the urgent need for opioid substitutes.
- Clinical Research Findings: In pre-clinical studies, NeuroThera's drug combination demonstrated significant analgesic effects, prolonging the pain-relieving duration of opioids while reducing psychological side effects, indicating its potential value in clinical applications.
- Strategic Implications: The patent acquisition not only enhances NeuroThera's competitive position in the market but also lays the groundwork for SciSparc's innovative development in the opioid sector, potentially accelerating future drug development and commercialization efforts.








