BY Fraser Tennant
In a combination that takes the digital healthcare group public, ETAO International is to merge with special purpose acquisition company (SPAC) Mountain Crest Acquisition Corp. III in a transaction valued at $2.5bn.
Under the terms of the definitive agreement, a $250m private investment in public equity (PIPE) will be included at $10 per share from investor China SME Investment Group, which is scheduled to close simultaneously with the SPAC transaction.
In addition, ETAO has also received commitments through a separate private placement of $51m, which is expected to close prior to 15 February 2022.
“A business combination is an important step for ETAO in realising our goal of becoming a leading provider of modern, patient-centric healthcare services,” added Dr Lee Winter, president of ETAO. “Mountain Crest’s understanding of our market and of our global strategy makes them an ideal partner to accompany us during our rapid growth.”
A multinational company founded in 2017, with businesses in China, Canada and Australia, ETAO is a leader in the telehealth industry, maintaining a network of private specialised hospitals, telemedicine platforms and artificial intelligence healthcare technologies on a global scale.
“ETAO aims to become the world’s leading digital healthcare group – providing transformative medical care and quality service,” said Wilson Liu, chairman and chief executive of ETAO. “The partnership with Mountain Crest will enable us to expand more rapidly and bring many more talented clinicians and more advanced telemedicine technologies to bear on our commitment to better healthcare delivery to the Chinese population.”
The transaction, which is expected to complete in the summer of 2022, has been unanimously approved by the boards of directors of ETAO and Mountain Crest III, and is subject to approval by ETAO’s stockholders, Mountain Crest III’s stockholders and other customary closing conditions.
“I am thrilled to take the third SPAC of our Mountain Crest franchise to the next phase of the deal process,” concluded Dr Suying Liu, chairman, chief executive and chief financial officer of Mountain Crest III. “ETAO is a compelling investment opportunity and the secular tailwinds in the telehealth sector further add to its significant growth potential.”
News: Digital healthcare group ETAO to go public via $2.5 bln SPAC deal