(Bloomberg) -- Better Therapeutics, a company that helps treat patients with smartphone apps, is in advanced talks to go public through a reverse merger with a blank-check company, according to people with knowledge of the matter.
The San Francisco-based company is in talks to combine with Mountain Crest Acquisition Corp II, the people said, asking not to be identified because the information is private. It's also in discussions to raise capital from investors for a $50 million private investment in public equity, or PIPE, to support the transaction said the people.
The deal is expected to be announced later this week, the people said, although talks are ongoing and could still fall apart.
Representatives for Better Therapeutics and Mountain Crest II declined to comment.
Better Therapeutics, founded in 2015, develops software for apps that treat patients, which it calls prescription digital therapeutics. Its apps can be prescribed to help treat diabetes, heart disease and other conditions using cognitive behavioral therapy.
Case studies on its website show patients using the smartphone app to set goals and track biometric markers to help establish new habits. The company is running clinical trials of its products.
The SPAC raised $57.5 million in its initial public offering in January. Its shares closed trading Tuesday down 0.6%, giving it a market value of $75 million.
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