Digital Health Acquisition in an 8-K filing said it entered a backstop agreement with its sponsor, which would purchase any remaining shares and accompanying warrants from a $2 million PIPE addition available to institutional investors particpating in the main $8 million private investment. The sponsor commtted to buying all extra shares the PIPE investors do not acquire.
Digital Health has deals in place with VSee Lab, a telehealth software company, and iDoc Telehealth, a neurocritical care and intensive care telehealth provider. The transaction had been expected to close in the third quarter of 2022, resulting in a valuation of approximately $110 million for the combined entity.
The closing deadline is Feb. 8, although the SPAC can extend that for up to six months provided the sponsor deposits $350,000 into the Digital Health trust for each three-month extension period.
The SPAC raised $115 million in a November 2021 IPO. Read more.
