Numinus Wellness (TSX: NUMI) is set to get into the artificial intelligence business. The firm this morning announced that it has entered into a letter of intent to acquire MedBright AI Investments (CSE: MBAI) to “AI-enable mental health clinics” within the US, while announcing a name change to Numinus Intelligence.

The merger is expected to combine AI-enabled clinical solutions from MedBright with that of data and experience from Numinus in an effort to improve the firms clinical operations and to capitalize on reimbursable healthcare options. The transaction is also expected to strengthen Numinus’ balance sheet, adding cash and securities of over $5.0 million.

A transition team meanwhile has been formed to cut costs, preserve cash and increase revenues prior to the transaction closing.

READ: Numinus Sees Integrated VC, MAPS Lead $6.0 Million Funding Round

Under the terms of the transaction, MedBright shareholders will receive 1.86 common shares of Numinus for each share held, resulting in the issuance of 204.7 million new shares. On a pro-forma basis, MedBright shareholders are expected to hold 39% of the resulting company.

“This acquisition is the culmination of our efforts over the past year to align Numinus with the revenue growth opportunities we see in the U.S. mental health care sector with the delivery of high-quality care to a large population of patients in need of drug-assisted therapy and mental health services. [..] 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,” commented Numinus’ CEO Payton Nyquvest.

The transaction remains subject to the negotiation of a definitive agreement, due diligence, regulatory approvals, and the approval of shareholders. A timeline for closing was not provided.

Numinus Wellness last traded at $0.05 on the TSX.

Information for this briefing was found via Numinus Wellness. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.