CORRECTION: SciSparc Acquires MUSE IP Portfolio From Xylo in Equity-Based Asset Deal; SciSparc Issued To Xylo An Amount Of Ordinary Shares Of The Company, Which Represents 19.99% Of The Issued And Outstanding Share Capital Of SciSparc

SciSparc intends to target the global multi- billion dollar GERD device market

TEL AVIV, Israel, Jan. 26, 2026 (GLOBE NEWSWIRE) -- SciSparc Ltd. (NASDAQ:SPRC) ("Company" or "SciSparc"), a company engaged in clinical-stage pharmaceutical developments through its majority-owned subsidiary NeuroThera Labs Inc., announced today the closing of the acquisition of an IP portfolio of patents, trademarks and intellectual property rights for innovative endoscopic systems and medical cameras, including the MUSE™ system, from Xylo Technologies Ltd. ("Xylo").

The MUSE™ system is a single-use, innovative endoscopic device designed for transoral fundoplication, a minimally invasive procedure to treat gastroesophageal reflux disease ("GERD").

SciSparc intends to commence commercialization of these patented technologies immediately following the transaction closing, building on the established foundation to drive rapid market penetration and revenue generation.

Building on Xylo's successful commercialization in Greater China through licensing and distribution agreement with a Shanghai-based medical instruments company in 2019, under which Xylo received $3 million up front, SciSparc seeks to replicate this proven model across high-growth territories, such as North America, Europe and Latin America, by pursuing similar exclusive partnerships with leading regional distributors to accelerate global commercialization and unlock substantial revenue streams.

Under the terms of the asset purchase agreement, SciSparc acquired the complete portfolio of patents, trademarks, know-how, and related intellectual property rights, mainly associated with the MUSE™ system, from Xylo. In consideration for the acquired assets, SciSparc issued to Xylo an amount of ordinary shares of the Company, which represents 19.99% of the issued and outstanding share capital of SciSparc (the "Issued Shares"). In lieu of some of the Issued Shares, SciSparc issued pre-funded warrants to purchase ordinary shares.