Pear Therapeutics and Thimble Point Acquisition Corp. announced today that they received additional funding worth $50 million ahead of a merger.
Boston-based Pear Therapeutics confirmed in June that it will go public by merging Thimble Point Acquisition Corp., a special purpose acquisition company (SPAC). A special meeting will be held for Thimble Point stockholders to vote on the merger on Nov. 30, and, subject to approval, the combination is expected to close shortly thereafter.
The merger with Thimble Point, whose management team is associated with the Pritzker Vlock Family Office, will result in a combined company named Pear Holdings Corp that will trade under the “PEAR” ticker on the Nasdaq market.
An affiliate of Thimble Point’s sponsor made an additional commitment of up to $50 million, adding to $23 million provided as part of a private placement to be consummated in connection with the merger (private investment in public equity, or PIPE). Together, the minimum gross amounts from the PIPE and from the affiliate of Thimble Point’s sponsor are expected to reach $175 million, according to a news release.
In connection with newly revised definitive agreements, Pear Therapeutics has agreed to waive the requirement that the total cash proceeds in the combination equal or exceed $200 million.
The company develops prescription digital therapeutics (PDTs) and currently has three authorized by the FDA for treating substance use disorder, opioid use disorder and chronic insomnia.
“Pear is the perfect fit for us because its PDTs already are changing healthcare in the U.S., and Pear’s landmark payer decisions in 2021 with both government and commercial payers give us great confidence that PDTs will become mainstream medicine sooner than we expected when we approached Pear earlier this year,” Thimble Point President and CEO Elon Boms said in the release. “Thimble Point is proud to launch Pear as a well-funded public company.”
Pear also announced today that it secured six-month lock-up agreements covering approximately 82.4% of the shares to be issued in connection with the previously announced $125 million PIPE.
“Pear is grateful for the support we have received from our PIPE investors and Thimble Point since we began raising the PIPE,” Pear President and CEO Dr. Corey McCann said in the news release. “Our PIPE investors showed their belief in Pear’s promise when we up-sized the PIPE and did so again when they signed the lock-up agreements.”