$SciSparc (SPRC.US)$ SciSparc Ltd (NASDAQ:SPRC) shares are t...

SciSparc Ltd (NASDAQ:SPRC) shares are trading higher Wednesday after the company announced it entered into an agreement to acquire Wellution for $20 million.

SciSparc entered into a definitive agreement with Merhavit M.R.M Holding and Management to acquire its rights to purchase Wellution.

Wellution sells dozens of hemp-based products including hemp gummies, hemp oil capsules, hemp gel, hemp cream, detox pills, antibacterial creams and anti-aging creams. The company's products are manufactured in the United States and sold on the Amazon.com (NASDAQ:AMZN) platform.

"We are excited about the execution of our decision to identify strategic transactions in lucrative growing markets. Wellution is a leader in the fast-growing global industrial Hemp market on Amazon and we believe in the high potential of expanding the Brand's reach beyond the American market," said Oz Adler, CEO of SciSparc.

SciSparc will pay a base cash payment of $4.59 million and in 12 months pay an additional deferred cash payment. The company will also grant M.R.M Holding $15 million worth of warrants to purchase ordinary shares of SciSparc at an exercise price of $7 per share.

SciSparc is a specialty clinical-stage pharmaceutical company focusing on the development of therapies to treat disorders of the central nervous system.