A San Francisco-based cognitive therapy company is going public through a SPAC. Better Therapeutics, Inc. is merging with Mountain Crest Acquisition Corp II (NASDAQ: MCAD), a publicly traded special purpose acquisition corporation. The deal is valued at $187 million, and existing shareholders will roll over 100% of their equity into the equity of the combined company.

Better Therapeutics is a prescription digital therapeutics company delivering cognitive behavioral therapy to address the root causes of cardiometabolic diseases. The company’s platform blends clinical, behavioral, and psychological inputs into a series of therapy lessons and skill-building modules designed to isolate and shift the underlying causes of a wide range of cardiometabolic diseases.

The transaction includes a $50 million PIPE led by Farallon Capital Management, RS Investments, Sectoral Asset Management, and Monashee Investment Management, with participation from other undisclosed investors. Better Therapeutics has also received commitments through a separate private placement of $6 million. The proceeds of the transaction will be used to advance the company’s lead product for the treatment of type 2 diabetes, BT-001.

The transaction is expected to close in the summer of 2021, and the combined company will operate as Better Therapeutics, to be listed on the NASDAQ under the symbol BTTX.

According to search results in our Healthcare Deals Database, this is the first SPAC deal in the Behavioral Health Care sector. Most of the deals have been concentrated in the eHealth sector, with a small selection in healthcare services.