Mountain Crest Acquisition III in a regulatory filing said shareholders voted in favor of combining with Beijing-based ETAO, a healthcare group that manages a dozen hospitals, some 30 clinics and an insurance brokerage.
No word on redemptions, if any, although the SPAC had traded well below its redemption price in the lead-up to the vote.
Mountain Crest III restruck merger terms with ETAO in June, cutting the deal value to $1 billion from the $2.5 billion announced in January 2022.
The SPAC cited market conditions for the downward valuation, although Mountain Crest III also disclosed it had failed to secure a $51 million PIPE, as well as the uncertainty of a $250 million commitment in a private investment in the SPAC’s securities that is scheduled to close simultaneously with the business combination. Read more.
