Hyperfine and Liminal Sciences today said they will go public by merging with a SPAC called HealthCor Catalio Acquisition Corp.
The merger is valued at approximately $580 million upon closing and is expected to have a combined entity of $375 million in cash. The combined company’s estimated cash balance will be $207 million from the SPAC trust fund, $126 million from PIPE investors and $66 million from the balance sheets of Hyperfine and Liminal and less than $24 million in transaction expenses.
Through the deal, HealthCor Catalio will be renamed as Hyperfine and will be listed on the NASDAQ stock exchange under the ticker symbol HYPR.
“The combination of Hyperfine, Liminal and HealthCor Catalio presents an inspiring opportunity to transform the global MR imaging and brain-sensing paradigm,” Hyperfine president and CEO Dave Scott said in a news release. “This business combination will empower Hyperfine with the expanded resources, financing, and expert advisory team to substantially broaden MR imaging accessibility and ultimately build a transformational ecosystem across the care continuum.”
Special purpose acquisition companies (SPACs) have become a hot investment mechanism in medtech and other industries as the U.S. emerges from the COVID-19 pandemic and resulting recession.
Hyperfine makes the Swoop imaging system that is portable for accessible use in hospitals, clinics and other settings outside of the conventional MRI suite. The merger comes nearly a year after the company received FDA clearance for the device.
Liminal is developing an advanced, non-invasive technology to monitor brain vital signs, including blood flow and pressure.
“The best way to predict the future is to make it,” Hyperfine and Liminal founder Jonathan Rothberg said. “We are taking the next step in our mission to provide affordable and accessible imaging, sensing, and guided robotic intervention to democratize and bring equity to healthcare for people around the world.”
“Healthcare is rapidly evolving within and beyond the walls of the traditional hospital. We believe Hyperfine and Liminal are well-positioned to bring sophisticated MR imaging and neurological vital signs detection to a broader patient base with substantially reduced barriers to care. Hyperfine’s rapid growth is a testament to its innovative technology, and we see an immense market opportunity poised for disruption,” HealthCore Catalio CEO Christopher Gaulin said.
Hyperfine CEO Scott will become president and CEO of the combined company, and former Verb Surgical and Volcano Corp. CEO Scott Huennekens will become the executive chair.