Better Therapeutics announced today that, through a $113 million merger with Mountain Crest Acquisition Corp II, it will go public.
Mountain Crest, a publicly-traded, special purpose acquisition corporation (SPAC), will acquire Better Therapeutics in a deal expected to be completed in the summer of this year, with the company continuing to operate as Better Therapeutics while being listed on the Nasdaq under the BTTX ticker, according to a news release.
The transaction values Better Therapeutics, which develops prescription digital therapeutics (PDTs) designed to address the root causes of cardiometabolic diseases, namely Type 2 diabetes, at $187 million. Existing shareholders in the company will roll over 100% of their equity into equity of the combined company.
Leading healthcare investors and thought leaders, led by Farallon Capital Management, RS Investments, Sectoral Asset Management and Monashee Investment management, are contributing a $50 million private investment in public equity in the transaction, along with other undisclosed investors. The company received commitments through a separate private placement of $6 million, too.
Proceeds from the transaction will be earmarked to advance Better Therapeutics’ lead product, BT-001, for treating Type 2 diabetes, toward FDA authorization. Further funds will be put toward advancing the company’s pipeline of PDTs for cardiometabolic disease.
“This is a unique time to build a company like Better Therapeutics,” Better Therapeutics co-founder & CEO Kevin Appelbaum said in the release. “Patients, doctors and insurers have grown increasingly comfortable with digitally delivered solutions, including prescription digital therapeutics, and we are uniquely positioned to change the way some of the most prevalent and costly diseases are treated.”
“I am thrilled to take the second Mountain Crest SPAC to the next phase of our deal process, and the founding team at Better Therapeutics has a track record of creating successful companies by focusing on large and disruptive market opportunities,” added Mountain Crest II chairman & CEO Dr. Suying Liu. “We are excited to partner with them to accelerate the development and commercialization of the Better Therapeutics platform, which aims to deliver life changing outcomes to patients.”