Mountain Crest Acquisition III in an 8-K filing said a $250 million PIPE agreement with SME Investment Group has been terminated by mutual consent. Terms at deal announcement in January had called for SME to purchase 250,000 shares at $10 each. No reason was given for calling off the investment.
The SPAC has a merger agreement with ETAO International Group, a digital healthcare company providing telemedicine, hospital care, primary care, pharmacy and health insurance. Mountain Crest III holds about $54 million in trust, although the ETAO deal has a minimum cash condition of $200 million.
The transaction values ETAO at a pro forma fully diluted enterprise value of approximately $2.5 billion with existing ETAO shareholders rolling over 100% of their equity into the combined company.
If approved, ETAO securities are expected to be listed on the NYSE under the symbol ETAO. Read more.
