SciSparc Announces Completion of Strategic IP Acquisition to Drive Rapid Commercialization

Tel Aviv, Israel – January 26, 2026 — SciSparc Ltd. (Nasdaq: SPRC) (“SciSparc” or the “Company”), a clinical-stage technology company with pharmaceutical and medical device interests, today announced the successful closing of a major acquisition of an extensive portfolio of intellectual property (IP) assets from Xylo Technologies Ltd. (“Xylo”). The newly acquired portfolio includes patents, trademarks, proprietary know-how and intellectual property rights for innovative endoscopic medical systems, including the MUSE™ system — a state-of-the-art, single-use endoscopic platform for minimally invasive treatment of gastroesophageal reflux disease (GERD).

Key Strategic Transaction Finalized

In its latest press release, SciSparc confirmed that the transaction to acquire the full IP portfolio from Xylo has officially closed as of January 26, 2026. Under the terms of the agreement, SciSparc issued ordinary shares to Xylo representing 19.99% of SciSparc’s issued and outstanding share capital in exchange for these assets. This IP portfolio includes pioneering technologies for endoscopic systems and medical cameras that support diagnostic and therapeutic procedures.

The Company has indicated that it plans to commence commercialization efforts immediately, a strategic shift meant to quickly unlock value from these assets and establish SciSparc as a major player in the medical technology market. The transaction expands SciSparc’s technological footprint beyond pharmaceutical development and leverages its leadership team’s experience in guiding clinical-stage technologies toward commercial success.

About the MUSE™ System and Clinical Opportunity

The MUSE™ system is a single-use endoscopic device specifically designed for transoral fundoplication, a minimally invasive surgical approach used to treat gastroesophageal reflux disease (GERD). GERD is a common chronic gastrointestinal condition affecting millions of people worldwide — a condition that often requires ongoing medication management or invasive surgery when symptoms become severe. With the MUSE™ platform technology, clinicians can offer patients a less invasive treatment option that may reduce the need for lifelong medication or open surgical procedures.

According to market research referenced in SciSparc’s press releases, the global GERD device market is valued at approximately $2.5 billion as of 2024 and is projected to grow toward an estimated $3.03 billion by 2030, reflecting strong long-term commercial demand and investment interest in technologies that improve outcomes for GERD patients. This growth is propelled by prevalence rates, rising awareness of treatment alternatives, and innovations in minimally invasive procedures.

Strategic Importance of the Acquisition

SciSparc’s acquisition of this comprehensive IP portfolio represents a major strategic expansion that positions the Company to compete in the multi-billion dollar medical device market. By acquiring ownership of the patents, trademarks and know-how connected to the MUSE™ system and related technologies, SciSparc gains access to both the intellectual property and the future revenue potential generated by commercializing these innovations across global markets.

This acquisition also reflects SciSparc’s broader organizational shift to diversify its asset base beyond its clinical drug development programs and into products that may reach the market more quickly. The company’s leadership has emphasized that bringing these technologies to market could create a substantial new revenue stream and attract strategic distribution partners across key regions.

Global Commercialization Strategy

SciSparc has outlined its intention to pursue immediate commercialization of the acquired technologies. The Company plans to build upon the successful groundwork laid by Xylo, which previously achieved significant commercial penetration in Greater China through a licensing and distribution agreement with a Shanghai-based medical instruments partner. Under that deal, Xylo received $3 million in upfront consideration, illustrating the early commercial value associated with these technologies.

Moving forward, SciSparc intends to replicate this model in other high-growth regions including North America, Europe and Latin America. The strategy focuses on securing exclusive distribution agreements with leading regional partners who can accelerate adoption, facilitate market entry and maximize customer access in major healthcare markets. The Company believes that forming such strategic alliances will help unlock substantial revenue streams and drive rapid market penetration worldwide.

Market Potential and Revenue Projections

The global medical device market for GERD treatments reflects strong and sustained growth potential, with industry estimates suggesting consistent year-over-year expansion. Ongoing advancements in minimally invasive surgery and endoscopic technology — combined with rising public awareness of less invasive treatment alternatives — are expected to fuel demand for cutting-edge devices like the MUSE™ system.

By commercializing the MUSE™ platform and related IP, SciSparc expects to capitalize on this trend, attract leading healthcare partners, and expand its medical technology portfolio into new commercial segments. The Company plans to leverage existing relationships and pursue additional collaborations aimed at strengthening its market presence outside its traditional core competencies.

Financial and Investment Implications

As part of the purchase agreement, SciSparc issued ordinary shares to Xylo amounting to 19.99% of SciSparc’s overall issued and outstanding share capital. While this equity issuance allows SciSparc to complete the transaction without an immediate cash outlay, the dilution effect on current shareholders is a strategic consideration that investors will analyze as part of their risk assessment.

The issuance of shares as consideration also reflects confidence in the future commercial prospects of the acquired portfolio. By aligning the interests of both SciSparc and Xylo through equity participation, the Company aims to foster long-term value creation and shared upside potential as the technologies reach global markets.

It’s important to note that forward-looking statements included in the press release are subject to customary risks and uncertainties, which the Company discloses in its filings with the U.S. Securities and Exchange Commission. These statements involve expectations about future events, commercialization success, market conditions and regulatory landscapes, and may differ materially from actual results depending on a range of factors.

Company Vision and Future Direction

SciSparc Ltd. has cultivated a diverse technology portfolio focused on advancing clinical-stage pharmaceutical innovations and now strategic medical device technologies. Through this acquisition, the Company has demonstrated its commitment to broadening its capabilities, harnessing intellectual property and targeting new markets that offer scalable commercial opportunities.

SciSparc’s overall corporate strategy continues to emphasize innovation, commercialization readiness and strategic partnerships that accelerate technology adoption. By integrating the newly acquired assets into its existing operational framework, the Company aims to reinforce its position as a dynamic player at the intersection of medical device innovation and clinical therapeutics.

Looking ahead, SciSparc will likely provide further operational updates as it launches commercialization initiatives, begins regulatory engagement in key regions, and secures distribution channels that support broad adoption of the MUSE™ system and other advanced technologies in the portfolio.

Summary: Acquisition Sets Foundation for Global Technology Deployment

In summary, SciSparc’s successful acquisition of Xylo’s IP portfolio — including cutting-edge medical device technology and endoscopic system patents — represents a pivotal milestone in the Company’s evolution. With immediate plans to commercialize these technologies and expand into international markets, SciSparc is poised to transform its business model and unlock significant revenue opportunities in the growing global GERD device market and beyond.