SciSparc Ltd. (NASDAQ:SPRC) stock is surging on Thursday. The Nasdaq is up 0.63% while the S&P 500 has gained 0.41%.
The massive upside comes on the heels of a pre-market announcement detailing a key regulatory milestone achieved by the Tel Aviv-based pharmaceutical player’s majority-owned subsidiary.
• SciSparc stock is showing exceptional strength. What’s driving SPRC stock higher?
TSX Conditional Green Light
SciSparc announced that its subsidiary, NeuroThera Labs Inc., received conditional regulatory approval from the TSX Venture Exchange. The approval clears a path for NeuroThera to acquire an approximate 54% majority stake in CliniQuantum Ltd.
Under the terms of the share purchase agreement (SPA) previously disclosed in March, NeuroThera will acquire 56,375 ordinary shares of CliniQuantum. In exchange, NeuroThera will issue 56.600 million common shares to the selling shareholders, representing an aggregate value of approximately $9.459 million.
Quantum Powering Clinical Data
CliniQuantum, a private Israeli technology company, develops a platform that applies quantum simulation and quantum Monte Carlo methods to clinical trial data analysis. The technology aims to improve the precision of clinical trial outcomes by identifying specific patient subpopulations that respond to investigational therapies.
CliniQuantum’s material asset includes an exclusive, worldwide license agreement with Quantum X Labs Ltd., which holds a U.S. provisional patent application entitled “Generating Quantum Markov Chain Monte Carlo Sampling Points for Continuous Distribution Functions.”
Adjusted Deal Terms and Escrow
To satisfy TSX feedback, NeuroThera and the selling shareholders amended the SPA on April 30. The amendment establishes a floor price of 5 cents per common share for future earn-out payments and implements lock-up arrangements.
The parties also extended the outside closing date to June 1 to finalize an Israeli tax ruling. Upon completion, all 56.600 million consideration shares will enter escrow under a Form 5D Escrow Agreement.
SPRC Stock Price Activity: SciSparc shares were up 157.05% at $11.31 at the time of publication on Thursday, according to Benzinga Pro data.
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