The announcement comes just weeks after the company reported it let go of approximately 35% of its workforce.
Better Therapeutics, a prescription digital therapeutics company, announced a private placement of the company’s common stock, which garnered gross proceeds of approximately $6.5 million.
Officers and directors of the company participated in the placement, which is expected to close on or around April 10.
Better Therapeutics was among the many digital health companies that went public by merging with a special purpose acquisition company in 2021. It debuted at a stock price of around $10 per share. On April 5, at the time of the private placement, the company’s stock was $0.825 per share.
WHAT IT DOES
The California-based company provides cognitive behavioral therapy to address diabetes, hypertension and other cardiometabolic diseases.
The proceeds will be used to extend the company’s runway through its intended FDA marketing authorization for its BT-001 investigational prescription digital therapeutic for Type 2 diabetes.
MARKET SNAPSHOT
Late last month, Better Therapeutics filed a notice with the U.S. Securities and Exchange Commission that said it was laying off approximately 35% of its workforce.
Per the filing, the company expected to incur approximately $400,000 in cash-related expenses due to severance and benefits in Q2 2023.
In an email notifying employees of the workforce reduction, Better Therapeutics’ CEO Frank Karbe said the company was “implementing other cost savings measures” to extend its financial runway further.
The company has struggled to reach profitability since going public as a SPAC. In its most recent Q4 2022 and full year 2022 financial results, the company reported a net loss of $39.8 million for 2022 compared to $40.3 million in 2021.
The company expects its operating cash burn for 2023 to be lower than expected by approximately $10 million due to restructuring and other cost savings measures. It noted it was actively seeking additional capital.
