Entheon to Pivot into Nutraceuticals with $40 Million Nutravisor Acquisition

Entheon Biomedical ( (TSE:ENBI) ) just unveiled an announcement.

Entheon Biomedical has signed a binding letter of intent to acquire all of the issued and outstanding shares of Nutravisor Inc., after which the combined entity will continue Nutravisor’s business of pouch and nutraceutical consumer products. The deal, valued at approximately $40 million through the issuance of 53,333,333 Entheon shares at $0.75 on a post-consolidation basis, will see Entheon complete a roughly 6.93-for-1 share consolidation, shift control of management and the board to Nutravisor’s nominees, change its name, and undergo a fundamental change of business subject to regulatory, shareholder, and Canadian Securities Exchange approvals; trading in Entheon’s shares is expected to be halted while the transaction is reviewed and Nutravisor may raise up to $5 million via a concurrent private placement.

Spark’s Take on TSE:ENBI Stock

According to Spark, TipRanks’ AI Analyst, TSE:ENBI is a Underperform.

Entheon Biomedical is facing significant financial and operational challenges, with ongoing losses, liquidity issues, and a weak technical position. The recent termination of an acquisition agreement adds to strategic uncertainties. The company’s negative valuation metrics reflect market skepticism about its future profitability. Overall, the stock presents high risk, with potential upside if strategic improvements are successfully implemented.

To see Spark’s full report on TSE:ENBI stock, click here.

More about Entheon Biomedical

Entheon Biomedical Corp. is a Vancouver-based biotechnology research and development company focused on treating addiction and substance use disorders. The company is listed on the Canadian Securities Exchange, OTCQB and Frankfurt Stock Exchange, and historically has operated in the biotech and mental health therapeutics space.

YTD Price Performance: -45.95%

Average Trading Volume: 18,065

Technical Sentiment Signal: Hold

Current Market Cap: C$1.39M

Learn more about ENBI stock on TipRanks’ Stock Analysis page.