SciSparc Board of Directors to Promote Buyback Program of up to $1 Million

Rhea-AI Summary

SciSparc Ltd. (Nasdaq: SPRC) has announced a $1 million share buyback program, aimed at enhancing shareholder value. The program will require court approval in Israel and is contingent upon the formal approval of financial statements for the six months ending June 30, 2022. The company is engaged in developing cannabinoid-based therapies targeting conditions such as Tourette syndrome, Alzheimer's disease, and autism spectrum disorder. This move reflects SciSparc's commitment to delivering shareholder returns amidst ongoing clinical trials.

Positive

• Authorization of a $1 million buyback program is aimed at increasing shareholder value.
• Engagement in multiple drug development programs may enhance future revenue streams.

Negative

• The buyback program is contingent upon court approval, introducing uncertainty.
• No guarantee that the buyback will proceed as intended due to regulatory considerations.

TEL AVIV, Israel, July 06, 2022 (GLOBE NEWSWIRE) -- SciSparc Ltd. (Nasdaq: SPRC) (the “Company” or “SciSparc”), a specialty, clinical-stage pharmaceutical company focusing on the development of therapies to treat disorders of the central nervous system, today announced its board of directors authorized the Company to take actions to implement a $1 million buyback program for the Company’s ordinary shares, no par value (the “Ordinary Shares”).

The Company expects to formally approve the buyback in conjunction with the approval of its financial statements for the 6 months ended June 30, 2022, together with a financial advisor’s opinion to be obtained.

The Company is required to file a motion seeking a court approval in Israel for the buyback program, and the effectiveness of the buyback plan, if formally approved, will be contingent upon such court’s approval.

About SciSparc Ltd. (Nasdaq: SPRC):
SciSparc Ltd. is a specialty clinical-stage pharmaceutical company led by an experienced team of senior executives and scientists. SciSparc’s focus is on creating and enhancing a portfolio of technologies and assets based on cannabinoid pharmaceuticals. With this focus, the Company is currently engaged in the following drug development programs based on THC and/or non-psychoactive cannabidiol (CBD): SCI-110 for the treatment of Tourette syndrome, for the treatment of Alzheimer’s disease and agitation; SCI-160 for the treatment of pain; and SCI-210 for the treatment of autism spectrum disorder and status epilepticus.

Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. For example, SciSparc is using forward-looking statements when it discusses the contemplated buyback program as there is no assurance that any of the conditions required by law for the effectiveness of the program will be satisfied and accordingly whether the buyback program will be initiated or its timing. Because such statements deal with future events and are based on SciSparc’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of SciSparc could differ materially from those described in or implied by the statements in this press release. The forward- looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in SciSparc’s Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 28, 2022, and in subsequent filings with the SEC. Except as otherwise required by law, SciSparc disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date they were made, whether as a result of new information, future events or circumstances or otherwise.

Investor Contact:
IR@scisparc.com 
Tel: +972-3-6167055

FAQ

What is the purpose of SciSparc's buyback program?

The buyback program aims to enhance shareholder value by repurchasing $1 million worth of ordinary shares.

When will SciSparc formally approve the buyback program?

Formal approval of the buyback is expected alongside the financial statements for the six months ending June 30, 2022.

What conditions must SciSparc meet to initiate the buyback program?

The buyback program requires court approval in Israel to become effective.

How might the buyback program affect SPRC's stock price?

If successful, the buyback could lead to an increase in share price by reducing the number of outstanding shares.

What are the key drug development programs SciSparc is working on?

SciSparc is focused on developing therapies for Tourette syndrome, Alzheimer's disease, autism spectrum disorder, and pain.