SciSparc Signs Non-Binding Letter of Intent to Sell Stake in MitoCareX
SciSparc (Nasdaq: SPRC) has signed a non-binding letter of intent (LOI) to sell its entire 52.73% ownership stake in MitoCareX Bio to a publicly-traded US company. The deal involves a two-phase transaction:
1. SciSparc will sell 27% of its MitoCareX shares for $700,000 in cash.
2. The remaining 73% will be exchanged for shares based on an $8 million valuation of the purchaser and a $5 million valuation of MitoCareX.
The LOI includes provisions for additional milestones that could increase the consideration from $5 million to $7 million. The MitoCareX valuation represents a 47% increase from SciSparc's initial investment. SciSparc's CEO, Oz Adler, stated that this agreement aligns with their strategy to enhance shareholder value.
SciSparc (Nasdaq: SPRC) ha firmato una lettera di intenti non vincolante (LOI) per vendere la sua intera partecipazione del 52,73% in MitoCareX Bio a una società statunitense quotata in borsa. L'accordo prevede una transazione in due fasi:
1. SciSparc venderà il 27% delle sue azioni MitoCareX per 700.000 dollari in contanti.
2. Il restante 73% sarà scambiato per azioni basate su una valutazione dell'acquirente di 8 milioni di dollari e una valutazione di MitoCareX di 5 milioni di dollari.
La LOI include disposizioni per ulteriori obiettivi che potrebbero aumentare il corrispettivo da 5 milioni a 7 milioni di dollari. La valutazione di MitoCareX rappresenta un aumento del 47% rispetto all'investimento iniziale di SciSparc. Il CEO di SciSparc, Oz Adler, ha dichiarato che questo accordo è in linea con la loro strategia di aumentare il valore per gli azionisti.
SciSparc (Nasdaq: SPRC) ha firmado una carta de intención no vinculante (LOI) para vender su participación total del 52.73% en MitoCareX Bio a una empresa estadounidense que cotiza en bolsa. El acuerdo involucra una transacción en dos fases:
1. SciSparc venderá el 27% de sus acciones de MitoCareX por 700,000 dólares en efectivo.
2. El 73% restante se intercambiará por acciones basadas en una valoración de 8 millones de dólares para el comprador y una valoración de 5 millones de dólares para MitoCareX.
La LOI incluye disposiciones para hitos adicionales que podrían aumentar la contraprestación de 5 millones a 7 millones de dólares. La valoración de MitoCareX representa un aumento del 47% con respecto a la inversión inicial de SciSparc. El CEO de SciSparc, Oz Adler, declaró que este acuerdo se alinea con su estrategia de aumentar el valor para los accionistas.
SciSparc (Nasdaq: SPRC)는 미국 상장 회사에 MitoCareX Bio에 대한 52.73%의 전체 지분을 판매하기 위한 비구속적인 의향서(LOI)를 체결했습니다. 이 거래는 두 단계로 이루어집니다:
1. SciSparc는 MitoCareX의 주식 27%를 70만 달러에 판매합니다.
2. 나머지 73%는 구매자의 800만 달러 가치 평가와 MitoCareX의 500만 달러 가치 평가를 기준으로 주식으로 교환됩니다.
LOI에는 500만 달러에서 700만 달러로 보상을 증가시킬 수 있는 추가 이정표에 대한 조항이 포함되어 있습니다. MitoCareX의 평가는 SciSparc의 초기 투자액의 47% 증가를 나타냅니다. SciSparc의 CEO인 Oz Adler는 이 계약이 주주 가치를 향상시키려는 그들의 전략에 부합한다고 밝혔습니다.
SciSparc (Nasdaq: SPRC) a signé une lettre d'intention non contraignante (LOI) pour vendre sa participation totale de 52,73 % dans MitoCareX Bio à une société cotée en bourse aux États-Unis. L'accord implique une transaction en deux phases :
1. SciSparc vendra 27 % de ses actions MitoCareX pour 700 000 dollars en espèces.
2. Les 73 % restants seront échangés contre des actions sur la base d'une valorisation de 8 millions de dollars pour l'acheteur et d'une valorisation de 5 millions de dollars pour MitoCareX.
La LOI comprend des dispositions pour des jalons supplémentaires qui pourraient augmenter la contrepartie de 5 millions à 7 millions de dollars. La valorisation de MitoCareX représente une augmentation de 47 % par rapport à l'investissement initial de SciSparc. Le PDG de SciSparc, Oz Adler, a déclaré que cet accord est en accord avec leur stratégie d'augmentation de la valeur pour les actionnaires.
SciSparc (Nasdaq: SPRC) hat ein nicht bindendes Letter of Intent (LOI) unterzeichnet, um seine gesamte Beteiligung von 52,73 % an MitoCareX Bio an ein börsennotiertes US-Unternehmen zu verkaufen. Der Deal umfasst eine zweiphasige Transaktion:
1. SciSparc wird 27 % seiner MitoCareX-Anteile für 700.000 Dollar in bar verkaufen.
2. Die verbleibenden 73 % werden gegen Aktien auf der Grundlage einer Bewertung von 8 Millionen Dollar für den Käufer und einer Bewertung von 5 Millionen Dollar für MitoCareX eingetauscht.
Das LOI enthält Bestimmungen für zusätzliche Meilensteine, die die Gegenleistung von 5 Millionen auf 7 Millionen Dollar erhöhen könnten. Die Bewertung von MitoCareX stellt einen 47%igen Anstieg im Vergleich zur ursprünglichen Investition von SciSparc dar. Der CEO von SciSparc, Oz Adler, erklärte, dass diese Vereinbarung mit ihrer Strategie zur Steigerung des Aktionärswertes übereinstimmt.
- Potential to receive up to $7 million in total consideration for the sale of MitoCareX stake
- 47% increase in MitoCareX valuation since SciSparc's initial investment
- Opportunity to unlock value from investment and potentially enhance shareholder value
- Divestment of majority stake (52.73%) in MitoCareX Bio, potentially losing control over a promising venture
- Non-binding nature of the LOI, indicating the deal is not yet finalized
- Potential conflict of interest as SciSparc's board members also serve on the purchaser's board
Insights
This LOI represents a potentially significant financial transaction for SciSparc. The company is looking to sell its 52.73% stake in MitoCareX at a valuation that's
- Initial
$700,000 cash for 27% of SciSparc's MitoCareX stake - Remaining 73% exchanged for shares valued at
$4.3 million - Potential for additional
$2 million based on milestones
This could provide SciSparc with a substantial cash injection and equity in the purchasing company. However, it's important to note this is a non-binding LOI, not a finalized deal. The 47% valuation increase since initial investment suggests MitoCareX has appreciated well, but investors should consider whether this exit aligns with SciSparc's long-term strategy in the CNS therapeutics space.
The non-binding nature of this LOI is a critical legal point. While it sets a framework, the final terms are subject to negotiation and definitive agreements. Of particular note is the disclosure of potential conflicts of interest:
- Mr. Amitay Weiss serves as chairman for both SciSparc and the Purchaser
- Ms. Liat Sidi is a board member for both companies
These overlapping roles could raise governance concerns and may require careful management to ensure the transaction is arms-length and in the best interests of all shareholders. The milestone-based additional payments structure also introduces legal complexities that will need clear definition in any final agreement. Investors should watch for the transition from LOI to binding agreements and any changes in the proposed structure or valuation.
The intended selling valuation represents an increase of 47% from the valuation at the time of SciSparc’s initial investment in MitoCareX Bio
TEL AVIV, Israel, Sept. 26, 2024 (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, announced it has signed a non-binding letter of intent (“LOI”) to sell its entire ownership interest in MitoCareX Bio Ltd. ("MitoCareX"), the Company’s venture with Dr. Alon Silberman that focuses on drug discovery and development of cancer therapeutics by targeting the mitochondrial SLC25 protein family, to a publicly-traded company in the United States (“the Purchaser”). SciSparc currently owns
Pursuant to the terms of the LOI, initially, in exchange for transferring and selling to the Purchaser a number of ordinary shares of MitoCareX that constitute
The LOI also includes provisions for additional milestones that, upon achievement, could increase the consideration paid by the Purchaser to SciSparc from
The valuation of MitoCareX, as described in the LOI, constitutes an increase of
“SciSparc is focused on unlocking value through our investments and partnerships,” said Oz Adler, CEO of SciSparc. “We believe that this agreement, which sets the foundation for future value growth through milestone achievements, aligns with our long-term strategy to enhance shareholder value."
Mr. Amitay Weiss, who serves as the chairman of the board of directors of SciSparc, also serves as the chairman of the board of directors of the Purchaser. In addition, Ms. Liat Sidi, who also serves as a member of the board of directors of SciSparc, also serves as a member of the board of directors of the Purchaser.
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 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 ASD and status epilepticus. The Company also owns a controlling interest in a subsidiary whose business focuses on the sale of hemp seed oil-based products on Amazon Marketplace.
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 proposed terms of the transactions contemplated by the LOI, including expected valuations of parties involved; the full terms of the contemplated transaction which are subject to negotiation and execution of definitive agreements; and that the Company believes that this LOI aligns with its long-term strategy to enhance shareholder value. The Company may not enter into or complete any definitive agreement for the proposed transactions with the Purchaser or, even if it does, such transactions may not unlock or enhance shareholder value. 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 SEC on April 1, 2024, and in subsequent filings with the U.S. Securities and Exchange Commission. 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
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