ETAO International Group, a multinational digital healthcare company founded in 2017, is merging with Mountain Crest Acquisition Corp III, a publicly traded special purpose acquisition corporation.
ETAO International Group, a Cayman Islands company, aims to be the world’s leading digital healthcare group providing a range of online and offline healthcare services in China, including telemedicine, hospital care, primary care, pharmacy and health insurance covering all life stages of patients.
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 equity of the combined company. The transaction includes a $250 million private investment in public equity (PIPE) at $10 per share from thought-leading investor China SME Investment Group that is scheduled to close simultaneously with the business combination transaction. Separately, ETAO has also received commitments through a separate private placement of $51 million expected to close prior to February 15, 2022.
According to ETAO, funds from the deal will be used to improve healthcare delivery amenities in its clinics and hospitals, as well as towards its internet-based medical services. Upon completion of the transaction, which is anticipated in the summer of 2022, the combined company will operate as ETAO and securities are expected to be listed on NYSE under the symbol “ETAO.”
Revere Securities LLC is acting as capital markets advisor to Mountain Crest III. Sichenzia Ross Ference LLP is acting as legal counsel to ETAO in the transaction. Loeb & Loeb LLP is acting as legal counsel to Mountain Crest III.
