Prescription digital therapeutics pioneer Pear Therapeutics introduced right now that it’ll go public by merging with a SPAC known as Thimble Level Acquisition Corp.
Boston-based Pear Therapeutics’ mixture with the particular goal acquisition firm (SPAC), whose administration group is related to the Pritzker Vlock Household Workplace, will lead to a mixed firm named Pear Holdings Corp. The businesses anticipate to finish the merger within the second half of this yr.
Pear Holdings Corp. might be led by Pear’s present administration group, with the mixed firm’s widespread inventory set to be listed on the Nasdaq market below the ticker “PEAR,” in line with a information launch.
The enterprise mixture values the mixed firm at a professional format fairness worth of roughly $1.6 billion. Pear Holdings Corp. is predicted to have roughly $450 million in web money on its steadiness sheet upon the transaction, together with roughly $400 million in gross proceeds from a mix of about $276 million in Thimble Level’s belief account (assuming no Thimble Level shareholders train their redemption rights at closing) and roughly $125 million (at $10 per share) from a completely dedicated personal funding in public fairness (PIPE).
Buyers concerned within the PIPE embrace 5AM Ventures, Arboretum Ventures, Blue Water Science Advisors, dRx Capital (Novartis Pharma AG), The Eleven Fund, FORTH Administration, Well being Innovation Capital (HIC), JAZZ Enterprise Companions, a number one built-in supply community, Neuberger Berman funds, Palantir, Pilot Home, Pritzker Vlock Household Workplace, QUAD Funding Administration, Sarissa Capital, Shanda Group, SoftBank Imaginative and prescient Fund 2, Temasek and Trustbridge Companions.
The oversubscribed PIPE providing was upsized from $100 million to $125 million, as all present Pear fairness holders are set to roll the whole lot of their fairness holdings into the mixed firm with the expectation of holding roughly 72% of issued and excellent fairness within the mixed firm after closing.
Web proceeds from the transaction will go towards the commercialization of the corporate’s three FDA-authorized prescription digital therapeutics (PDTs) for treating substance use dysfunction, opioid use dysfunction and persistent insomnia.
“At Pear, we got down to rework healthcare via using PDTs, a brand new class of clinically validated, software-based therapeutics that we pioneered to enhance sufferers’ outcomes throughout many therapeutic areas, alone and together with prescription drugs. With our end-to-end PDT platform, we’re executing on our imaginative and prescient to redefine how sufferers, clinicians and payors can higher navigate and profit from a healthcare system so in want of disruption,” Pear Therapeutics president & CEO Dr. Corey McCann mentioned within the launch.
“In our view, Pear is at a industrial inflection level, with the potential for fast growth,” McCann mentioned. “We consider this transaction will enable us to drive widespread utilization of PDTs to deal with main medical circumstances and overcome important limitations to affected person care.”
Seven administrators will comprise the corporate’s board initially, together with 4 of Pear’s present administrators and one designated by Thimble Level — Dentsply Sirona CFO Jorge Gomez. Every firm’s board of administrators unanimously authorised the merger.
“Because the class creator and chief in PDTs, Pear is on the forefront of revolutionizing healthcare. Pear’s spectacular group of healthcare and expertise leaders have constructed growth, regulatory and industrial roadmaps for this new sector and have gained early market traction, making a pathway to fast scalability,” Thimble Level CEO & chairman Elon Boms mentioned. “Thimble Level sought to collaborate with a high-growth, tech-enabled firm with the potential to disrupt massive and established industries.
“We selected to put money into Pear as a result of we consider it has the chance to turn into the first industrial platform via which sufferers and prescribers entry PDTs. Our progress capital comes at an inflection level for Pear, because the group works in direction of anticipated near-term worth creation milestones.”