Digital Health Acquisition in an 8-K said it has amended its backstop agreement, adding up to $7 million in PIPE financing — up from $2 million. The amendment also permits the sponor or its designees to participate in the backstop.
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 transactions had been expected to close in the third quarter of 2022, resulting in a valuation of approximately $110 million for the combined entity.
The SPAC in January disclosed it had entered a backstop agreement with its sponsor, which would purchase any remaining shares and accompanying warrants from the initial $2 million PIPE backstop 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. That supplemental financing followed announcement of a $10 million PIPE last August. Read more.
