Better Therapeutics To Go Public Via Mountain Crest SPAC Deal

Author: Vandana Singh | April 07, 2021 01:31pm

Better Therapeutics Inc, a company developing prescription-only smartphone-based treatments for Type 2 diabetes and high blood pressure, has agreed to go public through a merger with a blank-check company Mountain Crest Acquisition Corp II (NASDAQ: MCAD)
The transaction is expected to close during this summer, and the combined entity will operate under the Better Therapeutics moniker and trade on the NASDAQ under the symbol 'BTTX.'
The deal values Better Therapeutics at $187 million, including debt.
The merger is expected to deliver up to $113 million in proceeds, including private investment rounds collecting $56 million from Farallon Capital, RS Investments, Sectoral Asset Management, Monashee Investment, and other undisclosed investors.
Better Therapeutics, founded in 2015, develops software for apps that treat patients, calling it prescription digital therapeutics. Its apps can be prescribed to help treat diabetes, heart disease, and other conditions using cognitive behavioral therapy.
The company's first prescription digital therapeutics (BT-001) is under evaluation in a pivotal trial to treat type 2 diabetes used under physician supervision.
The SPAC has raised $57.5 million in its initial public offering in January.
Price Action: MCAD shares are down 0.25% at $9.92 on the last check Wednesday.