Although the PSPC frenzy has slowed since the start of the year, several digital health startups are still merging with blank check companies to access public markets. One of those deals, a merger between Better Therapeutics and Mountain Crest Acquisition Corp. II, has recently been concluded.
The San Francisco-based company raised a total of $ 110 million in merger proceeds and began trading on the Nasdaq on Friday under the ticker “BTTX”. He plans to use the funds to support a pivotal study of his digital therapy for type 2 diabetes.
“We envision a future where digital therapies are often the first written prescription to address the root causes of disease caused by patient behaviors,” CEO Kevin Appelbaum said in a press release. âThe completion of this transaction and the capital raised will be instrumental in helping our team lead the way in this transformation, starting with cardiometabolic disease. “
Better Therapeutics was founded in 2015. It does not yet have any products on the market, but aims to treat conditions such as type 2 diabetes, high blood pressure, and hyperlipidemia using programs based on applications. He intends to do this by attacking the cognitive models that determine eating and lifestyle behaviors, and for its applications to be prescribed by physicians.
The company is recruiting for a pivotal trial of its flagship therapy, with the objective of enrolling more than 600 people, according to Clinicaltrials.gov.
A spokesperson for the company wrote in an email that Better Therapeutics has almost participated in the registration for the trial and hopes to use it for a de novo submission to the FDA. It would launch its first digital therapy by 2023.
PSPC mergers involve the formation of a shell company, which goes public with the aim of finding an acquisition target. The group behind this agreement, Mountain Crest, has formed three PSPCs to date. The first took Playboy Enterprises to the stock exchange in February and the second went public with Better Therapeutics, while a target has yet to be announced for the third blank check company.
The shareholders of Mountain Crest Acquisition Corp. They approved a merger with Better Therapeutics at a meeting on October 27. The deal included gross proceeds of $ 70 million, including a private investment in public stocks by Farallon Capital Management, RS Investments, Sectoral Asset Management and Monashee Investment Management. It also included the first tranche of a line of credit from Hercules Capital.
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