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.
For more details, read the press release.