Digital Health (DHAC) Enters Backstop Agreement with Sponsor
by Marlena Haddad on 2023-01-19 at 2:12pm

Digital Health (NASDAQ:DHAC) announced this afternoon that it has entered into a backstop agreement in connection to its proposed merger with telehealth software firm VSee and digital healthcare provider iDoc.

Under the agreement, the sponsor is committed to purchase any and all additional PIPE shares and accompanying warrants that remain unpurchased by the PIPE investors in the additional PIPE offering at the same purchase price and on the same terms and conditions of the backstop commitment.

As a refresher, DHAC entered into an amended and restated securities purchase agreement on October 6 with certain accredited investors to have the participation right in subsequent offerings of the company’s equity securities. The PIPE investors agreed to purchase convertible preferred stock of the company designated as Series A Convertible Preferred Stock and warrants exercisable for shares of DHAC common stock for proceeds of at least $8M.  Prior to the closing of the business combination, DHAC intends to offer the PIPE investors the right to purchase up to an additional $2M of shares of its Series A Preferred Stock, or the additional PIPE shares, and accompanying warrants.

Back in August, the SPAC entered into a PIPE Securities Purchase Agreement with certain institutional and accredited investors for promissory notes convertible into shares of DHAC common stock, and warrants exercisable for shares of DHAC Common Stock for proceeds of at least $10M.

As background, DHAC did not include a PIPE at deal announcement, but brought in $115 million into the transaction from its trust. The deal had already featured a lock-up agreement for the company, at 50% six months after the close and 50% after 12 months after the close, and for the sponsor, at 6 months from the closing, but the parties decided to also include a PIPE Lock-Up Agreement through the securities purchase agreement in August.

Digital Health initially announced the $110 million deal with VSee and iDoc on June 16, 2022. California-based VSee provides a no code and low code SaaS platform to help physicians set up telehealth applications and Houston-based iDoc has a set of neurological telehealth tools to treat patients suffering from strokes or other brain injuries.

 

Digital Health (DHAC) Enters Backstop Agreement with Sponsor
Recent Posts
by Nicholas Alan Clayton on 2025-07-03 at 12:54pm

Crown PropTech (OTC:CPTKW) has entered into a definitive agreement to combine with rare earth mining firm Mkango Resources (TSX-V:MKA) at a pre-money equity value of $400 million. London-based Mkango is working to commercialize a chain of rare earth mining and refining facilities in Africa and Europe. The combined company is expected to trade on the...

by Nicholas Alan Clayton on 2025-07-03 at 8:27am

At the SPAC of Dawn One of the biggest sources of uncertainty in the SPAC market in recent years has been regulatory changes, but new shifts could be in its favor. SEC Chairman Paul Atkins told CNBC yesterday that the commission would review the rules for SPACs after “rather controversial” changes to the rules passed...

by Nicholas Alan Clayton on 2025-07-02 at 12:13pm

McKinley Acquisition Corporation (NASDAQ:MKLYU) has filed for a $150 million SPAC to hunt for an innovative target company with an experienced financial team that has dabbled in SPACs before. The new SPAC is offering investors one right to a 1/10 share in each unit with no overfunding of the trust, but it could provide a...

by Nicholas Alan Clayton on 2025-07-02 at 8:29am

At the SPAC of Dawn The rain of SPACs has continued with four expected to make their debuts during today’s trading sessions after pricing their IPOs overnight. The largest of these, EQV Ventures II (NASDAQ:EVACU), even managed an upsize, making it the largest SPAC IPO since Ares II (NYSE:AACT) pulled together $450 million in 2023....

by Nicholas Alan Clayton on 2025-07-02 at 6:28am

EQV Ventures II (NASDAQ:EVACU) announced the pricing of its upsized $420 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “EVACU”, Wednesday, July 2, 2025. The new SPAC plans to merge with an energy target involved in upstream exploration or production. EQV II’s management team is led by...

logo

Copyright © 2025 SPACInsider, Inc. All Rights Reserved