12:08 PM EST, 01/24/2025 (MT Newswires) -- Entheon Biomedical ( ENTBF ) on Friday rose 16% after the company entered into a binding letter of intent with 1000141080 Ontario to buy Mentis AI.

The deal is expected to be structured as a share exchange transaction pursuant to which the shareholders of Mentis AI will receive 12.84296 Entheon shares for each share of Mentis AI held, which will result in about 11-million Entheon shares being issued to Mentis AI shareholders. Mentis AI shareholders will collectively own about 44.25% of Entheon's shares following completion of the deal.

Entheon will receive AI tools and technologies in the acquisition, including AI companions (amicachat.ca) and coaches (gentlegossip.com) which will allow the company to obtain further information from customers who may be using HaluGen's Psychedelics Genetic Test Kit and Lobo's Cannabis Genetic Test Kit.

"The integration of AI technologies are of immediate use to our existing platforms and open up the potential to explore a broadening of services and products offered by Entheon to facilitate positive changes in the lives of those who seek change," said Entheon Chief Executive Timothy Ko.

The deal will be an arms-length transaction for Entheon and will not constitute a fundamental change or result in a change of control.

Shares of the company were last seen up $0.050 at $0.360 on the Canadian Securities Exchange.

Price: 0.36, Change: +0.05, Percent Change: +16.13