Monday, January 25, 2021

GigCapital2 Raises $285M As Part Of Cloudbreak Health Merger

GigCapital2, the Special Purpose Acquisition Company (SPAC) which is merging with Los Angeles-based Cloudbreak Health, said it has raised $285M in capital, which is part of its business combination with UpHealth Holdings and Cloudbreak Health. According to the company, the funding will go to support the combined company's growth as a public company. GigCapital2 did not say where the funding came from, but said the capital raise included 3,000,000 shares of GigCapital2 common stock at $10.00 per share and $255,000,000 of 5-year unsecured convertible notes which shall bear interest at a rate of 6.25% per annum, and are convertible into common shares of the combined company, UpHealth, Inc., at a conversion price of $11.50. Cloudbreak offers up telehealth solutions within hospitals, including telepsychiatry, telestroke, tele-quarantine, remote patient monitoring and other specialties, particularly around translation and language access.