Psychedelics-focused mental healthcare company Numinus Wellness Inc ( NUMIF ). (FSE: LR23) plans to take over MedBright AI Investments Inc. (CSE:MBA).

The proposed transaction comes as the Vancouver-based company reorganizes its operations with a near-term strategic plan toward generating positive EBITDA.

What Happened

Numinus announced the execution of a letter of intent Thursday to acquire MedBright which deploys artificial intelligence and machine learning to allow medical professionals to deliver increased access to healthcare, reduce healthcare costs and improve patient outcomes, by way of a statutory plan of arrangement.

Under the deal, Numinus plans to issue 1.86 of its common shares for each MedBright AI share. It is anticipated that Numinus will issue an aggregate of approximately 204,729,372 of its shares. That will represent ownership of approximately 39% of the pro forma company on an undiluted basis, based on the current capitalization of Numinus and MedBright AI.

In addition, the company intends to rebrand as Numinus Intelligence upon closing of the deal. The Numinus' ticker symbol of the Toronto Stock Exchange will remain NUMI.

See also: Numinus Wellness ( NUMIF ) Q2 2024 Revenue Declines Amid Clinic Reshuffling And Expected Industry Trends

Why It Matters

The strategic combination merges MedBright’s AI-enabled clinical solution capabilities with Numinus’ deep data and vast experience with drug-assisted mental health treatment to improve clinical operations and capitalize on reimbursable offerings.

Numinus plans to leverage its knowledge in traditional therapy, clinic management, patient care, insurance reimbursement and psychedelic-assisted therapy into a unique AI-enabled offering available to the growing number of U.S. mental health care providers.

As a result of the transaction, the balance sheet strengthens with cash and liquid securities more than $5 million. Moreover, the operational team continues to reduce overhead and is embarking on a revenue improvement plan for the Utah clinics.

Now read: Utah Hospitals Will Soon Provide Psilocybin And MDMA Therapy For Mental Health Conditions

What's Next

Leaders from the MedBright AI team with experience in U.S. healthcare clinic operations and ownership plan to join the management team and Board upon the completion of the transaction.

"We believe that harnessing our expertise and intellectual property to complement MedBright’s AI technology will amplify our ability to help those in need of care while driving revenue growth and, importantly, profitability,” Payton Nyquvest, CEO of Numinus said.