SciSparc on Shaky Ground After Nasdaq Delisting Warning

TEL AVIV, Israel – January 12, 2026 – Clinical-stage pharmaceutical company SciSparc Ltd. is facing a critical challenge to its public listing after receiving a formal notification from Nasdaq for failing to meet the exchange's minimum stockholders' equity requirement. The notice puts the company on a tight deadline to rectify its financial standing or risk being delisted from the Nasdaq Capital Market.

The notification, announced by the company today, states that SciSparc is not in compliance with Nasdaq Listing Rule 5550(b)(1), which mandates a minimum of $2,500,000 in stockholders' equity. According to a Form 6-K filed in November 2025, SciSparc's stockholders' equity had fallen to a deficit of approximately $(81,000) as of June 30, 2025, highlighting a precarious financial position for the cannabinoid-focused drug developer.

A Race Against Time and a History of Compliance Hurdles

In accordance with Nasdaq rules, SciSparc has been given a 45-day window, until February 26, 2026, to submit a detailed plan outlining its strategy to regain compliance. While the notification has no immediate effect on the trading of the company's shares, which continue to trade under the symbol "SPRC," it initiates a high-stakes review period. If Nasdaq accepts the plan, SciSparc could be granted an extension of up to 180 days to prove it has met the equity requirement.

SciSparc expressed confidence in its ability to resolve the issue swiftly. The company stated it "expects that it will be able to demonstrate compliance with the Nasdaq stockholders’ equity requirement as of December 31, 2025." This optimism is pinned on two recent capital-raising events: the conversion of $4.2 million in debentures and accrued interest in August 2025, and a registered direct offering completed in November 2025. The firm believes the proceeds from these transactions will be sufficient to push its balance sheet back into positive territory and above the $2.5 million threshold.

However, this is not the first time SciSparc has been at odds with Nasdaq's listing standards. The company previously faced a compliance challenge related to its minimum bid price. After receiving a deficiency notice in July 2024 for its stock trading below $1.00 per share, SciSparc was granted two consecutive 180-day extensions to resolve the issue. The company ultimately executed a 1-for-21 reverse share split in July 2025 to artificially inflate its stock price and regain compliance. This history of recurring compliance struggles paints a picture of a company walking a financial tightrope.

Widening Losses Cloud Ambitious Drug Pipeline

Beneath the immediate compliance issue lies a more fundamental concern about SciSparc's financial health and operational sustainability. The company's unaudited financial statements for the first half of 2025 revealed a net loss of $9.33 million, a significant increase from the $3.44 million loss reported during the same period in 2024. Compounding the issue, total sales fell from $0.84 million in H1 2024 to just $0.461 million in H1 2025.

Critically, this revenue is not generated from its core pharmaceutical business. Instead, it comes from a subsidiary's sale of hemp seed oil-based products on Amazon. This disconnect highlights the long road ahead for the company's primary mission: developing and commercializing cannabinoid-based therapies. With a negative EBITDA of over $7 million for the trailing twelve months, the company is burning through cash at a rapid pace—a common but perilous reality for clinical-stage biotechs that have not yet brought a product to market.

This financial fragility casts a shadow over SciSparc's ambitious research and development pipeline, which is managed through its majority-owned subsidiary, NeuroThera Labs Inc. The company is focused on developing treatments for significant unmet medical needs. Its lead candidates include SCI-110, aimed at treating Tourette syndrome and agitation in Alzheimer's disease, and SCI-210 for autism spectrum disorder and status epilepticus. These programs target large and complex markets, representing substantial potential value if successful.

Innovation at a Crossroads

The challenge for SciSparc, and for many small-cap biotechs like it, is funding these multi-year, capital-intensive clinical trials while navigating the stringent financial requirements of a public market listing. The constant need to raise capital, often through dilutive offerings, puts pressure on the stock price and can make it difficult to maintain compliance with exchange rules. The current non-compliance notice serves as a stark reminder of this tension between long-term scientific innovation and short-term financial solvency.

Market reaction to the news has been measured but reflects underlying investor caution. The company's stock closed at $1.43 on January 12, a modest decline of 2.05%, with a market capitalization of less than $5 million. This micro-cap valuation underscores the high-risk, high-reward nature of investing in a company at this stage. While SciSparc has a plan to address the immediate Nasdaq deficiency, the broader question for investors is whether the recent capital infusions represent a sustainable solution or merely a temporary patch. The company's ability to not only regain compliance but also secure the long-term funding necessary to advance its promising clinical programs through to commercialization remains the ultimate test.

The coming weeks will be crucial as SciSparc formulates its compliance plan for Nasdaq. The exchange's decision on that plan, and the company's ability to execute it, will determine its future access to public capital markets—a lifeline for any development-stage pharmaceutical firm aiming to turn scientific discovery into life-changing medicine.