SCISPARC Secures Nasdaq Extension, Unveils Quantum AI Drug Modeling & MitoCareX Merger

Introduction

SCISPARC LTD (NASDAQ: SPRC) is a clinical-stage pharmaceutical company based in Tel Aviv, Israel. The company develops therapies centered on the endocannabinoid system, with applications for conditions including Tourette syndrome, obstructive sleep apnea, Alzheimer’s disease, autism spectrum disorder, agitation, status epilepticus, and chronic pain. As of September 30, 2025, SCISPARC shares closed at $5.8608, reflecting an increase of 31.41 percent on a volume of 3,088,573 traded shares.

Corporate Structure

SCISPARC operates with a team of 11–50 employees and is guided by senior executives with backgrounds in biochemistry, pharmacology, clinical development, and finance. Chairman Itschak Shrem has over 40 years of experience in venture capital and capital markets. Oz Adler serves as Chief Executive Officer and Chief Financial Officer, having previously worked as a CPA at an Ernst & Young affiliate. Dr. Esther Zuloff-Shani, Chief Technologies Officer, has over two decades of experience in research and development, including time at Nasdaq-listed Macrocure Ltd. The scientific advisory board is chaired by Professor Raphael Mechoulam, known for his work in cannabinoid research.

Cannabinoid therapy by Buzzed Buds

Developments and News

On January 15, 2025, Nasdaq granted SCISPARC an additional 180-day extension—until July 14, 2025—to regain compliance with the minimum $1.00 bid price rule, with management considering a potential reverse share split.

In a Form 6-K filed on September 25, 2025, SCISPARC announced a “Quantum Computing-Enabled 3D Protein Modeling Initiative” aimed at enhancing AI-driven drug discovery. The filing also detailed a leadership transition on September 21, 2025, where Amitay Weiss was appointed President, and Itschak Shrem became Chairman of the Board.

A Form 6-K dated September 26, 2025, disclosed inducement agreements under which holders of 361,548 warrants to purchase ordinary shares at $11.6172 were offered a reduced exercise price of $3.10. The company expects gross proceeds of approximately $1.12 million, designated for working capital and general corporate purposes, subject to customary closing conditions.

On September 30, 2025, SCISPARC filed a Form 6-K reporting the approval of a merger with its majority-owned subsidiary MitoCareX, which focuses on drug discovery targeting resistant cancers such as pancreatic and non-small cell lung cancer.

Financial and Strategic Analysis

SCISPARC’s market capitalization was $6.94 million as of September 26, 2025. Key financial metrics for the trailing twelve months include:

• Revenue of $1.31 million
• Net loss of $6.28 million
• Diluted EPS of –$22.65
• Total cash of $2.06 million
• Debt/equity ratio of 0.51 percent

Price/Sales and Price/Book ratios were noted at 0.91 and 0.85, respectively. The company reported negative returns on assets (–42.05 percent) and return on equity (–80.66 percent), reflecting its clinical-stage status and ongoing research and development expenditures.

SCISPARC's pipeline includes four drug candidates in clinical trials and two in pre-clinical development. The merger with MitoCareX represents a strategic move towards oncology, while the quantum computing initiative aims to enhance drug discovery processes. The inducement of warrant exercises indicates a focus on improving liquidity management.

Market Position and Industry Context

Operating in the biotechnology research sector, SCISPARC is positioned within the niche of cannabinoid-based therapies. Its 52-week share price ranged from $1.75 to $37.59, indicating price volatility common among clinical-stage biotech firms. With a beta of 0.90, the stock's price movements have been somewhat less volatile than the broader market. Institutional activity in Q3 2025 included both additions and reductions by firms such as UBS Group, Renaissance Technologies, and Two Sigma. SCISPARC’s compliance extension and capital-raising efforts will be closely monitored by investors assessing its ability to maintain operations and advance its pipeline.

tl;dr

• Nasdaq extended SCISPARC’s minimum bid price compliance deadline to July 14, 2025; a reverse split is under consideration.
• On September 25, 2025, the company launched a quantum computing–enabled protein modeling initiative and changed its President and Chairman roles.
• Inducement agreements announced on September 26, 2025, aim to raise $1.12 million by lowering warrant exercise prices to $3.10.
• A merger with oncology-focused subsidiary MitoCareX was approved on September 30, 2025, enhancing SCISPARC’s drug-discovery capabilities.