Enters into Term Sheet to Acquire Life AI Corp Pty Ltd.

Vancouver, British Columbia – TheNewswire - 21 January, 2025 – MindBio Therapeutics Corp. (CSE: MBIO; Frankfurt: WF6), (the “Company” or “MindBio”), a clinical stage biopharmaceutical company specialising in psychedelic microdosing today announced a major discovery in the effect of psychedelic microdosing on patient’s speech.

The Company has discovered it can determine if a patient has dosed their medicine simply by analyzing their speech using advanced machine learning algorithms and artificial intelligence techniques. The speech discovery adds to a large repository of intellectual property,                             in the form of digital and AI related technologies the Company has developed as a protective and competitive moat around the dosing and administration of its lead candidate drug, MB22001.

This intellectual property is used to monitor patient’s adherence to dosage protocols, to deter misuse and immediately identify and report medication diversion to clinicians.  The technology stores and analyses blood data, speech data, EEG, ECG, DNA, psychological data and biophysical information collected 24hours/7days a week from patient wearables.   It’s algorithms draw from this broad source of data to create an authoritative diagnostic and prescription tool to precision target and dose patients who are likely positive responders to MB22001. MindBio is now preparing to commercialize certain aspects of this technological IP.

The Company is therefore pleased to announce that it has entered into a letter of intent dated January 21, 2025 (the “Letter of Intent”) to acquire Life AI Corp Pty Ltd. (“Life AI”), a health-focused company with technology assets in health and artificial intelligence (the “Proposed Acquisition”). Life AI’s most advanced asset in development is a smartphone-based application (the “Booze AI App”) used for alcohol intoxication detection.  The App will provide an estimate of blood alcohol concentration based on an analysis of a user’s speech and other biophysical information over a Smartphone without using any other hardware.

The commercial opportunities for MindBio’s speech discovery are significant for monitoring medication adherence including medication abuse or intoxication in patients through voice analysis and the acquisition of Life AI Corp provides an ideal platform to further develop, expand upon and commercialize MindBio’s discovery and intellectual property whilst the Company pursues drug development in clinical trials.

Booze AI, is developing the world’s first voice activated and artificial intelligence powered estimator of blood alcohol concentration over a smartphone.  It’s as simple as talking to your phone and performing a few tasks to get an estimate of your blood alcohol concentration on the go.  According to Google, there are an estimated 1 million searches globally for physical breathalyser units per month.  Booze AI is a convenient software solution and will be available to every smartphone user.  It is a potential major disruptor to this industry and the first consumer version of the product is due for launch around H2, 2025.  For more information ahead of the product launch visit www.booze-ai.com

There is a strategic fit between MindBio’s speech diagnostic tools and Booze AI’s work in alcohol consumption and intoxication detection and identification. The acquisition of LifeAI will allow MindBio to accelerate product development and pursue commercial opportunities for alcohol and drug testing using voice analysis in both consumer and enterprise markets.  

Justin Hanka, CEO, said “This discovery will enable the first commercialization of MindBio’s intellectual property whilst we conduct and await the results of multiple phase 2B clinical trials.  The acquisition of Life AI Corp provides us with a platform to commercialise and monetise certain aspects of our technological IP across several health verticals and we are very excited by the upcoming product launch of Booze AI”.

The Proposed Acquisition

Pursuant to the terms of the Letter of Intent, it is contemplated that the Company will acquire all of the issued and outstanding shares of Life AI through the issuance of 35,000,000 common shares of the Company (the “Consideration Shares”) to the existing shareholders of Life AI. The Consideration Shares will be subject to a four-month-and-one-day statutory hold period.

Completion of the Proposed Acquisition is subject to a number of conditions, including, but not limited to, completion of due diligence, negotiation of definitive documentation and the receipt of any required regulatory approvals.  The Proposed Acquisition cannot be completed until these conditions are satisfied, and there can be no assurance that the Proposed Acquisition will be completed at all. The Proposed Acquisition is not expected to constitute a fundamental change for the Company, nor is it expected to result in a change of control of the Company, within the meaning of applicable securities laws and the policies of the Canadian Securities Exchange.

Related Party Aspects

Justin Hanka, the Chief Executive Officer of MindBio, is a director and shareholder of Life AI.  As a result, the Proposed Acquisition may be considered a “related party transaction” for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. The Company will provide further information regarding the Proposed Acquisition, and any related party aspects, as its due diligence process is completed.

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For further information, please contact:

 

Justin Hanka, Chief Executive Officer

61 433140886

justin@mindbiotherapeutics.com

 

Media Inquiries

Kristina Spionjak

pr@hlthcommunications.com

 

About MindBio Therapeutics

 

MindBio is a leading biotech/biopharma company focused on creating novel and emerging treatments for mental health conditions and is conducting world first take-home Microdosing (MB22001) human clinical trials.  MB22001 is MindBio’s lead candidate drug, a proprietary titratable form of Lysergic Acid Diethylamide (LSD) designed for take-home microdosing.  MindBio is a leader in microdosing of psychedelic medicines and is advancing its drug and technology protocols through clinical trials. MindBio has developed a multi-disciplinary platform for developing treatments and is involved in psychedelic medicine development and digital therapeutics, has completed Phase 1 clinical trials in 80 healthy participants and has completed a Phase 2a clinical trial in patients with Major Depressive Disorder, both trials with positive top line data reported.  Currently underway are two Phase 2B trials, one in cancer patients experiencing existential distress and another in patients with Major Depressive Disorder.  The Company is also approved for multiple Phase 1/Phase 2B trials in women’s health. MindBio invests in research that forms the basis for developing novel and clinically proven treatments including digital technologies and interventions to treat debilitating health conditions such as depression, anxiety and other related mental health conditions.

 

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The press release contains "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "budget," "believe," "project," "estimate," "expect," "scheduled," "forecast," "strategy," "future," "likely," "may," "to be," "could," "would," "should," "will" and similar references to future periods or the negative or comparable terminology, as well as terms usually used in the future and conditional. Forward-looking statements are based on assumptions as of the date they are provided. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

Additionally, there are known and unknown risk factors that could cause the Company's actual results and financial conditions to differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important risk factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements, include among others: general economic, market and business conditions in Canada and Australia; market volatility; unforeseen delays in timelines for any of the transactions or events described in this press release.  All forward-looking information is qualified in its entirety by this cautionary statement.

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