Digital Health Acquisition Corp (NASDAQ:DHAC) announced in an 8-K this afternoon that its PIPE investors will not close the financing in connection with its business combination with telehealth software firm VSee and digital healthcare provider iDoc.
The SPAC previously entered into a securities purchase agreement with PIPE investors to issue and sell convertible preferred stock and warrants for DHAC Common Stock, raising at least $8 million for the business combination. Amendments were made to the agreement in April, including a closing condition stating that the business combination should be completed by July 10.
However, since this condition was not met and the SPAC is still working to close the deal, the PIPE investors notified DHAC on July 11 that they were not obligated to close the PIPE financing.
Digital Health inked its $110 million deal with the healthcare companies in June 2022 but did not include a PIPE at that time. The parties originally had a completion deadline of November 8, 2022, but were able to extend it by a year until November 8, 2023.
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.