. Alpha Tau is merging with the American Healthcare Capital Corp., at a value of $ 1 billion

An Israeli biomed company is taking advantage of the booming mergers market of recent months. Alpha Tau, which develops treatment for cancerous tumors using alpha radiation, is merging with the American Healthcare Capital Corp., at a value of $ 1 billion for the merged company.
Alpha Tau has recently received FDA recognition as a groundbreaking medical device for the indication of squamous cell carcinoma of the oral cavity and skin for patients who cannot receive standard treatments.
The merger will include raising up to $ 367 million for the new company, up to $ 275 million in cash will be held in the trust account of Hela Capital (traded on the NASDAQ under the HCCC symbol), and another $ 92 million in PIPE (private investment in a public company).
The raising of PIPE was ensured through a combination of financial and strategic investors focused on the healthcare sector and including Initiative Investment, Overcrowd, the founders of Apax Partners, Sir Ronald Cohen and Alan Petrikoff, and other international investors. Another investment in private recruitment is the Madison Group.
Following the completion of the merger and private raising, and assuming no redemption will be made by the public shareholders, Alpha Theo is expected to hold approximately $ 362 million in cash in its balance sheet.
The capital raised is intended to expand the implementation of Alpha Theo's clinical strategy, which includes submission for FDA marketing approval, a wide range of research and development activities, expansion of the company's production capacity and preparations for marketing and commercialization of the treatment. The raising is expected to provide sufficient cash for the company's operations, at least until 2024.
Alpha Tau will continue to be managed by its current management team, and with the closing of the deal the chairman of Halt Kerr, Dr. David M. Milch, will be appointed a director of Alpha Theo. The merger is expected to close by the end of the year, and upon completion, Alpha Tau is expected to be traded on the Nasdaq.