MindMed (NEO: MMED) this morning announced that it will be acquiring that of HealthMode in a largely stock-based transaction. HealthMode is a digital medicine and therapeutics startup focused on the use of artificial intelligence to improve the precision and speed of clinical research and patient monitoring.
The acquisition will reportedly see the company strengthen its executive team, with the appointment of Daniel R Karlin, MD and MA, to the role of chief medical officer, while Bradford Cross, whom is reportedly an AI and machine learning expert, will take on the role of chief technology officer. The acquisition will also see the company acquire all IP, platforms for clinical drug trials, and the entire staff of HealthMode.
The platform will reportedly be integrated with MindMed’s recently established digital medicine division, known as Albert. Commenting on the acquisition and the justification for the hefty purchase, CEO J.R. Rahn stated, “In effect, we see a future mental health treatment paradigm where potential drug products such as our LSD experiential therapy might be prescribed right alongside software application programming interfaces (APIs) to prepare the patient for treatment and optimally monitor the after-care of one’s anxiety disorder.“
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The acquisition comes with a hefty price tag, with the company issuing 82,508 multiple voting shares, which based on yesterday’s closing price have a current value of roughly $41.3 million, as well as a cash portion of $300,000.
The transaction is expected to close by the end of February 2021.
MindMed last traded at $5.13 on the NEO.
Information for this briefing was found via Sedar and MindMed. 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.
