10:59 AM EDT, 07/08/2024 (MT Newswires) -- SciSparc ( SPRC ) said Monday it has signed a non-binding letter of intent to spin off its advanced clinical stage pharmaceutical portfolio and its equity stake in SciSparc Nutraceuticals to Miza III Ventures, a publicly traded company on the Toronto Stock Exchange Venture.

SciSparc ( SPRC ) said that under the LOI, it will sell, assign, convey and transfer the target assets to Miza in consideration for 63 million Miza common shares and up to 48 million Miza contingent rights based on pre-determined milestones.

After the completion of such transaction, SciSparc ( SPRC ) would have a controlling stake in Miza, the exact percentage of which will depend on definitive terms between the parties, SciSparc ( SPRC ) said.

The proposed asset and share purchase agreement referenced in the LOI is based on the roughly $3.3 million enterprise value of Miza and a roughly $11.6 million value of SciSparc's ( SPRC ) assets, according to SciSparc ( SPRC ).

The company said its pharmaceutical portfolio includes potential treatments for Tourette syndrome, Alzheimer's disease and autism.

Shares of SciSparc ( SPRC ) were down 4% in recent Monday trading.

Price: 0.74, Change: -0.04, Percent Change: -4.74