In a surprising move, SciSparc Ltd, a prominent clinical-stage pharmaceutical company specializing in therapies for central nervous system disorders and rare diseases, has recently announced a standby equity purchase agreement (SEPA) with YA II PN, Ltd., a fund managed by Yorkville Advisors Global, LP.
Under the terms of the agreement, YA has committed to purchasing up to $20 million worth of SciSparc’s ordinary shares over the next thirty-six months. However, this commitment comes with a caveat – a beneficial ownership cap of 4.99% of the company’s share capital. This strategic move raises eyebrows in the financial sector, as it signifies a significant financial infusion into SciSparc Ltd.
The purchase price of the ordinary shares is set at a 3% discount of the weighted average price of the company’s shares during a specific three-day trading period. This discount, coupled with YA’s commitment, has triggered a notable surge in SciSparc’s stock value. The morning after the announcement, the stock commenced trading at $5.61, a substantial increase from its previous close at $3.46.
At the time of this publication, Scisparc Ltd stock (SPRC) has witnessed a surge.
Scisparc Ltd
Current Price: $5.19
Change : +1.73
Change (%): (50.00%)
Volume: 22.5M
Source: Tomorrow Events Market Data
The SEPA agreement grants SciSparc the sole discretion to sell shares to YA, contingent upon the issuance of an advance notice. Importantly, YA has no authority to compel the company to sell any shares. This flexibility aligns with SciSparc’s strategic decision-making process and provides them with the autonomy to navigate the terms of the agreement based on market conditions.
Crucially, the company plans to utilize the proceeds from the potential offering of ordinary shares for working capital and other general corporate purposes. This signals a proactive approach by SciSparc to strengthen its financial position and drive further advancements in its research and development efforts.
It’s noteworthy that the securities described in the press release have not been registered under the Securities Act of 1933, indicating a potential regulatory hurdle. This prompts a cautious note, as the securities may not be sold in the United States without proper registration or an applicable exemption. The company emphasizes that the press release does not constitute an offer to sell, and any sale of these securities must adhere to legal requirements in the relevant jurisdictions.
As SciSparc Ltd takes this bold step with YA II PN, Ltd., the market will be closely watching the unfolding developments, and investors will be keenly assessing the impact of this strategic move on the company’s future trajectory. The pharmaceutical sector, already dynamic and competitive, now witnesses SciSparc positioning itself for potential growth and innovation in the challenging landscape of clinical-stage drug development.
