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SciSparc to Acquire MUSE GERD Device IP in Deal Valued at 19.99% Equity Stake

Benzinga·01/13/2026 11:58:11
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SciSparc Ltd. (NASDAQ:SPRC) ("Company" or "SciSparc"), a company engaged in clinical-stage pharmaceutical developments through its majority-owned subsidiary NeuroThera Labs Inc., announced today the signing of a definitive agreement to acquire a treasury of patents, trademarks and intellectual property rights for innovative endoscopic systems and medical cameras, including the MUSE™ system, from Xylo Technologies Ltd. ("Xylo").

The MUSE™ system is a single-use, innovative endoscopic device designed for transoral fundoplication, a minimally invasive procedure to treat gastroesophageal reflux disease ("GERD").

SciSparc intends to commence commercialization of these patented technologies immediately following the transaction closing, building on the established foundation to drive rapid market penetration and revenue generation.

Building on Xylo's successful commercialization in Greater China through licensing and distribution agreement with a Shanghai-based medical instruments company in 2019, under which Xylo received $3 million 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 definitive agreement, SciSparc will acquire the complete portfolio of patents, trademarks, know-how, and related intellectual property rights, mainly associated with the MUSE™ system, from Xylo. In consideration for the acquired assets, SciSparc will issue to Xylo, upon the closing of the transaction (the "Closing"), an amount of ordinary shares of the Company, which shall represent, as of the Closing date, which is set on March 8, 2026, 19.99% of the issued and outstanding share capital of SciSparc (the "Issued Shares"). SciSparc may elect, at its sole discretion, to issue, in lieu (in whole or in part) the Issued Shares, pre-funded warrants to purchase ordinary shares.

The transaction remains subject to customary closing conditions, including any required regulatory approvals.