SciSparc's Quantum Leap: Subsidiary Bets on New Frontier for Trials

TEL AVIV, Israel – March 10, 2026 – In a move that signals a significant convergence of biotechnology and deep tech, SciSparc Ltd.’s subsidiary NeuroThera Labs has entered into a definitive agreement to acquire a majority stake in CliniQuantum Ltd., a pioneering Israeli quantum technology firm. The deal, valued at approximately $9.46 million, positions NeuroThera at the vanguard of a movement to overhaul the costly and time-consuming process of clinical drug trials using the power of quantum computing.

NeuroThera Labs, which is 75% owned by Nasdaq-listed SciSparc, will acquire a 54.01% interest in CliniQuantum by issuing 56.6 million of its common shares. The transaction underscores a bold strategic bet that quantum-enhanced analytics can unlock efficiencies and insights currently beyond the reach of classical computers, potentially accelerating the development of new medicines for central nervous system (CNS) disorders and other complex diseases.

The Quantum Promise for Drug Development

At the heart of this acquisition lies CliniQuantum's ambitious platform, which aims to transform how clinical studies are designed, executed, and analyzed. The company, which holds patents originating from Ramot, the technology transfer arm of Tel Aviv University, specializes in quantum simulation and quantum Monte Carlo methods—highly advanced computational techniques designed to tackle problems of immense complexity.

For the pharmaceutical industry, the clinical trial process is notoriously fraught with challenges, from patient recruitment and site selection to the analysis of massive, multi-dimensional datasets. CliniQuantum proposes to address these bottlenecks by harnessing quantum computing's unique ability to process information. Its platform is being developed to design smarter, faster, and more adaptive studies by:

• Optimizing Trial Protocols: Simulating countless variations of a clinical trial in silico to identify the most efficient and effective protocol before a single patient is enrolled.
• Identifying Patient Sub-populations: Analyzing complex genomic and biomarker data to pinpoint which patient groups are most likely to respond to a specific treatment, paving the way for more personalized medicine.
• Accelerating Data Analysis: Processing vast streams of trial data in near real-time to allow for adaptive trial designs, where protocols can be modified mid-study based on emerging results.

While artificial intelligence and machine learning have already begun to make inroads in drug discovery, quantum computing represents the next frontier. Quantum systems can simulate molecular interactions with a degree of accuracy impossible for classical machines, potentially leading to better drug candidates. In the clinical phase, quantum optimization algorithms could drastically improve logistics, such as selecting the most effective trial sites from a global network, a task that involves a staggering number of variables.

A Strategic Pivot Beyond Cannabinoids

For SciSparc and its subsidiary NeuroThera, the acquisition marks a significant strategic pivot. Both companies have historically focused on clinical-stage pharmaceutical development, particularly cannabinoid-based therapies for CNS disorders like Tourette syndrome, Alzheimer's-related agitation, and autism spectrum disorder. While that pipeline remains central, the move to acquire a foundational technology company like CliniQuantum signals a broader vision. It is a shift from developing individual drugs to owning a platform that could enhance the development of an entire portfolio of future therapies.

The financial structure of the deal reflects this forward-looking strategy. NeuroThera, which trades on the TSX Venture Exchange with a market capitalization of approximately C$3.23 million, will issue shares valued at nearly three times its current market cap to secure the CliniQuantum stake. This will result in significant dilution for existing shareholders but represents a calculated wager on CliniQuantum's transformative potential.

Further incentivizing performance, the agreement includes potential earn-out payments of up to $2.5 million for CliniQuantum's selling shareholders. These payments are contingent on concrete milestones, including the filing of new patents with U.S. and European authorities and successful future fundraising by NeuroThera. This structure ties the final value of the acquisition directly to CliniQuantum's ability to protect its intellectual property and contribute to the combined entity's growth.

Israel's Biotech-Quantum Nexus

The deal also shines a spotlight on Israel's thriving innovation ecosystem, where world-class academia and a dynamic startup culture frequently intersect. CliniQuantum’s intellectual property stems directly from research conducted at Tel Aviv University and commercialized through Ramot, its technology transfer office. This pathway—from university lab to venture-backed company—is a hallmark of the nation's tech sector and a key driver of its global leadership in fields ranging from cybersecurity to biotechnology.

This acquisition is a prime example of the emerging synergy between Israel's established strength in life sciences and its growing prowess in deep technologies like quantum computing. By integrating CliniQuantum's Tel Aviv-based team and technology, NeuroThera is not just acquiring a tool but tapping into a rich ecosystem of talent and research. This local nexus provides a competitive advantage, fostering collaboration and keeping the company at the cutting edge of two of the most complex and promising scientific fields.

Navigating an Uncharted Regulatory Landscape

Despite the immense technological promise, the path forward is not without its challenges, particularly on the regulatory front. Global bodies like the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) are still developing frameworks for the use of artificial intelligence in drug development. Quantum computing, being an even more nascent technology, represents a largely uncharted territory.

NeuroThera and CliniQuantum will need to demonstrate to regulators that their quantum-powered insights and trial designs are not only innovative but also robust, reliable, and transparent. A key hurdle will be addressing the "black box" problem, where the decision-making process of a complex algorithm can be difficult to interpret. Ensuring the validation, security, and ethical use of patient data within these advanced systems will be paramount to gaining regulatory acceptance.

However, if these challenges can be overcome, the rewards could be substantial. Regulators have shown increasing openness to novel clinical trial designs and computational tools that can safely accelerate the delivery of life-saving therapies to patients. By positioning itself at the forefront of this technological wave, NeuroThera is betting that it can help write the rulebook for the next generation of pharmaceutical research and development, turning a quantum leap in computing power into a tangible benefit for human health. The transaction is expected to close around March 31, 2026, subject to an Israeli tax ruling and other standard closing conditions.