Better Therapeutics announced today that it secured a loan debt facility worth up to $50 million from Hercules Capital.
The debt facility provides up to $150 million in total financing when combined with the proceeds from going public through a $113 million merger with SPAC Mountain Crest Acquisition Corp II and a PIPE investment.
According to a news release, the San Francisco-based company plans to use the latest funds to support the advancement of its clinical pipeline and the commercialization of its first prescription digital therapeutic (PDT) for treating type 2 diabetes.
Better Therapeutics develops BT-001, an investigational, prescription digital therapeutic (PDT) designed to deliver a novel form of cognitive-behavioral therapy to patients with uncontrolled Type 2 diabetes. The company also has further PDTs for cardiometabolic disease in the pipeline.
“This transaction comes on the heels of an eventful few months, including the announcement of our pending SPAC merger and concurrent PIPE financing, as well as the initiation of our potentially pivotal study in type 2 diabetes,” Better Therapeutics co-founder & CEO Kevin Appelbaum said in the release. “This debt financing will further strengthen our balance sheet as we develop BT-001 and advance our pipeline of additional PDTs for other behavior-driven cardiometabolic diseases.”