The company has developed a healthcare ecosystem to extend the reach of traditional healthcare services to distant communities in China
ETAO is a digital healthcare company. (Credit: Darko Stojanovic from Pixabay)
ETAO International Group has signed an agreement with Mountain Crest III, a special purpose acquisition company (SPAC), to go public in a deal worth $2.5bn.
The transaction is expected to provide up to $304m in cash proceeds for ETAO.
The proceeds include a fully committed $250m PIPE at $10 per share and up to $54m of cash held in the trust account of Mountain Crest III.
ETAO is a digital healthcare company that offer telemedicine, hospital care, primary care, pharmacy and health insurance covering all life stages of patients.
Leveraging a technology platform, ETAO has developed a healthcare ecosystem to extend the reach of traditional healthcare services to distant communities in China.
ETAO chairman and CEO Wilson Liu said: “ETAO aims to become the world’s leading digital healthcare group—providing transformative medical care and quality service. We want to be a good company by doing the right thing—an unwavering commitment to always do our best for our patients, partners, and communities.
“The partnership with Mountain Crest will enable us to expand more rapidly and bring many more talented clinicians and more advanced telemedicine technologies to bear on our commitment to better healthcare delivery to the Chinese population.”
Internet medical services provided by ETAO are powered by artificial intelligence and big data technologies to enhance healthcare delivery.
The combined company will operate as ETAO, upon the completion of the transaction, which is expected to take place in the summer of 2022.
Revere Securities is serving as capital markets advisor to Mountain Crest III in the transaction. Sichenzia Ross Ference and Loeb & Loeb are legal counsels to ETAO and Mountain Crest III, respectively.
Mountain Crest III chairman, CEO and CFO Dr. Suying Liu said: “ETAO is a compelling investment opportunity, with its team’s track record of founding and running successful companies for large addressable markets. The secular tailwinds in the telehealth sector further add to its significant growth potential.”