SciSparc Implements Defensive Shareholder Rights Strategy

TEL AVIV, Israel, Nov. 28, 2023 (GLOBE NEWSWIRE) -- SciSparc Ltd. SPRC, a specialty clinical-stage pharmaceutical company focusing on the development of therapies to treat disorders and rare diseases of the central nervous system, has taken a proactive measure to protect the interest of its shareholders. By adopting a limited duration shareholder rights plan, they aim to ensure fair and equal treatment for all shareholders in the event of any takeover attempt that could dilute the value of the company’s shares.

Understanding the Shareholder Rights Plan

The plan, often known as a 'poison pill', is designed to deter aggressive takeover tactics by enabling existing shareholders to purchase additional shares at a discount. This effectively dilutes the holdings of a new, potentially hostile party attempting to acquire a significant stake without adequately compensating current investors.

SciSparc's Commitment to Shareholders

As a company deeply invested in the research and development of innovative central nervous system treatments, SciSparc views the rights plan as a strategic tool to guard its valuable drug-development programs and the interests of its investors. The adoption of this plan reflects the management's commitment to achieving long-term shareholder value, rather than catering to short-term speculative ventures. Headquartered in Tel Aviv, Israel, SciSparc prides itself on being a pioneer in the pharmaceutical industry, particularly in its work with cannabinoid molecules.

Implications for SPRC Investors

For investors in SPRC, this development is a critical piece of information. It symbolizes the management's dedication to protecting the company's future and to ensuring that the shareholders' investments are shielded from opportunistic takeover bids. This move may also indicate the management's belief in the underlying value and the growth potential of the company's clinical-stage programs.

SciSparc, RightsPlan, Shareholders