Press Release October 29, 2021

Better Therapeutics Closes Business Combination and Debuts on Nasdaq

The Life Sciences and Special Purpose Acquisition Companies (SPACs) teams advised Better Therapeutics, Inc. on its business combination with Mountain Crest Acquisition Corp II (Nasdaq: MCAD), a publicly traded SPAC. The resulting combined company commenced trading its shares on Nasdaq under the ticker symbol “BTTX” on October 29, 2021. 

Better Therapeutics is a prescription digital therapeutics (PDT) company developing a novel form of cognitive behavioral therapy to address the root causes of cardiometabolic diseases. The company has developed a proprietary platform for the development of FDA-regulated, software-based solutions for type 2 diabetes, heart disease and other conditions.

The proceeds of the transaction will be used to advance Better Therapeutics’ lead product for the treatment of type 2 diabetes, BT-001, through clinical trials and submission for marketing authorization by the U.S. Food and Drug Administration, and to advance its PDT pipeline for other cardiometabolic conditions.

The transaction generated approximately $70 million in gross proceeds from the business combination, a private investment in a public equity (PIPE) from leading healthcare investors led by Farallon Capital Management, RS Investments, Sectoral Asset Management, and Monashee Investment Management, and the first tranche of a credit facility from Hercules Capital that was contingent on the closing of the business combination. The company has access to an additional $40 million from the Hercules Capital credit facility subject to certain milestones.

The bicoastal Goodwin corporate team was led by Art McGivern, Heidi Mayon, and Shoaib Ghias, and included Pooja Sudarshan, Margaret Beale-Wirsing, Jaidev Kalra, and Frances Dea.

For more details, read the press release.