Digital Health Acquisition’s Sponsor Agrees to Backstop of up to $2M on VSee and iDoc Deals

Acquisition in an 8-K filing said it entered a backstop agreement with its sponsor, which would purchase any remaining shares and accompanying warrants from a $2 million addition available to institutional particpating in the main $8 million private investment. The sponsor commtted to buying all extra shares the PIPE investors do not acquire.

Digital Health has deals in place with VSee Lab, a telehealth software company, and iDoc Telehealth, a neurocritical care and intensive care telehealth provider.  The transaction had been expected to close in the third quarter of 2022, resulting in a valuation of approximately $110 million for the combined entity. 

The closing deadline is Feb. 8, although the SPAC can extend that for up to six months provided the sponsor deposits $350,000 into the Digital Health trust for each three-month extension period.

The SPAC raised $115 million in a November 2021 . Read more.

Source: Digital Health Acquisition's Sponsor Agrees to Backstop of up to M on VSee and iDoc Deals