Numinus Wellness (TSX: NUMI) is reporting this morning that it has sold its interest in Alto Neuroscience, a clinical-stage biopharma company that filed for its initial public offering earlier this week.

Alto’s current biotech pipeline is centered on tackling depression, with three clinical-stage programs currently underway, including one for its lead drug, ALTO-100. The drug is in a phase 2b trial, with results expected in the second half of the year.

The company is currently expected to raise between $93.8 and $107.2 million in gross proceeds from its go public, selling 6.7 million shares in a range of $14 to $16 a piece.

Numinous meanwhile held 1,000 non-voting participation shares of Alto within a special purpose vehicle, which Novamind, whom Numinus previously acquired, purchased at a price of $1.22 million. It is unclear at what ratio these shares would have converted into common stock. The fair value of the holdings were reported as being $1.6 million as of November 30, 2023.

“As our core strategy is to build the critical infrastructure that addresses the growing need for effective mental health treatments, the proceeds from the sale of this non-core asset will provide additional financial liquidity and flexibility,” commented Payton Nyquvest on the sale.

Total proceeds from the sale by Numinus were not disclosed.

Numinus Wellness last traded at $0.14 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.