SciSparc Inks Non-binding LOI To Sell Its Entire Ownership Interest In MitoCareX Bio

(RTTNews) - Israeli pharmaceutical company SciSparc Ltd. (SPRC) announced Thursday it has signed a non-binding letter of intent to sell its entire ownership interest in MitoCareX Bio Ltd. to a publicly-traded company in the U.S. SciSparc currently owns 52.73% of the issued and outstanding share capital of MitoCareX Bio.

MitoCareX Bio, 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.

Pursuant to the terms of the LOI, initially, in exchange for transferring and selling to the buyer a number of ordinary shares of MitoCareX that constitute 27% of its ownership in MitoCareX, SciSparc will receive in cash consideration $700,000.

Subsequent to this first phase, SciSparc will transfer to the Purchaser the remaining 73% of its ownership stake in MitoCareX in exchange for a certain number of shares based on the valuation of the buyer equal to $8.0 million and a valuation of MitoCareX equal to $5.0 million, which includes the $700,000 in cash consideration for SciSparc's shares.

The LOI also includes provisions for additional milestones that, upon achievement, could increase the consideration paid by the buyer to SciSparc to $7 million from $5 million. The details of the full terms of this transaction are subject to negotiation and execution of definitive agreements.

The valuation of MitoCareX, as described in the LOI, constitutes an increase of 47% since the Company's first investment in MitoCareX of $3.4 million.