{"id":510780,"date":"2021-07-08T07:34:49","date_gmt":"2021-07-08T11:34:49","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/alpha-tau-and-healthcare-capital-corp-to-combine-and-create-a-publicly-traded-company-focused-on-transforming-the-treatment-of-solid-tumors-through-the-precision-delivery-of-alpha-radiation\/"},"modified":"2021-07-08T07:34:49","modified_gmt":"2021-07-08T11:34:49","slug":"alpha-tau-and-healthcare-capital-corp-to-combine-and-create-a-publicly-traded-company-focused-on-transforming-the-treatment-of-solid-tumors-through-the-precision-delivery-of-alpha-radiation","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/alpha-tau-and-healthcare-capital-corp-to-combine-and-create-a-publicly-traded-company-focused-on-transforming-the-treatment-of-solid-tumors-through-the-precision-delivery-of-alpha-radiation\/","title":{"rendered":"Alpha Tau and Healthcare Capital Corp. to Combine and Create A Publicly Traded Company Focused on Transforming the Treatment of Solid Tumors Through the Precision Delivery of Alpha Radiation"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n – <\/b>
\n Alpha Tau’s proprietary Alpha DaRT<\/i>\u2122 is designed to deliver uniquely potent alpha radiation to destroy solid tumors with localized precision, sparing surrounding healthy tissue, thereby maintaining cancer patients’ quality of life. Alpha DaRT<\/i>\u2122\u00a0<\/i>has recently received FDA’s Breakthrough Device Designation for the indication of Squamous Cell Carcinoma of the skin and oral cavity without curative standard of care, and preclinical studies support evaluation across various cancer indications (skin, pancreas, breast<\/i>\u00a0and<\/i>\u00a0<\/i>GBM, <\/i>among others<\/i>).<\/i>\u00a0<\/i><\/p>\n

\n – <\/i>
\n The transaction represents <\/i>
\n an implied<\/i>
\n \u00a0<\/i>
\n pro forma equity value of approximately $1 billion<\/span> and is expected to provide up to $367 million<\/span> in gross proceeds, <\/i>
\n including<\/i>
\n \u00a0<\/i>
\n up to $275 million<\/span> of cash held in the trust account of Healthcare Capital Corp. (Nasdaq: HCCC) and a $92 million<\/span> PIPE.<\/i>\n <\/p>\n

\n – <\/i>
\n The $92 million<\/span> fully-committed PIPE is anchored by a combination of Healthcare-focused financial and strategic investors including Yozma Investment Co. (part of Yozma Group Korea), Grand Decade Developments (an affiliate of China Grand Pharmaceutical and Healthcare Holdings)<\/i>, as well as other leading technology investors including OurCrowd, <\/i>Regah Ventures and the co-founders of Apax Partners, <\/i>Alan Patricof<\/span> and Sir Ronald Cohen<\/span><\/i>. Medison Group, an early supporter of Alpha Tau<\/i>\u00a0and <\/i>global pharma company that provides access to highly innovative therapies to patients in international markets, is also an investor in the PIPE.<\/i><\/p>\n

\n – After giving effect to the transaction (and assuming no redemptions by public shareholders), Alpha Tau is expected to have approximately $362 million<\/span> of cash on the balance sheet.<\/i>\n <\/p>\n

\n – <\/i>
\n Net proceeds are to be used for further expansion of Alpha Tau’s clinical strategy including the pursuit of FDA marketing authorization, a broad array of R&D activities, expanding manufacturing capacity and preparing for commercialization, and are expected to provide cash runway at least into 2024.<\/i>\n <\/p>\n

\n – All Alpha Tau shareholders will retain 100% of their equity holdings in the public company<\/i>\n <\/p>\n

\n – <\/i>
\n Alpha Tau will continue to be led by its current management team, and upon closing, it is expected that HCC Chairman Dr. David M. Milch<\/span> will be appointed to the Alpha Tau Board of Directors.<\/i>\n <\/p>\n

\n – <\/i>
\n The<\/i>
\n \u00a0proposed<\/i>
\n \u00a0<\/i>
\n business combination is expected to be completed by the end of 2021, upon which Alpha Tau is expected to be listed on Nasdaq.<\/i>\n <\/p>\n

\n JERUSALEM<\/span>
\n and <\/span>
\n WILMINGTON, Del.<\/span>, July 8, 2021<\/span> \/PRNewswire\/ — Alpha Tau Medical Limited (“Alpha Tau”), the developer of the pioneering alpha-radiation cancer therapy Alpha DaRT\u2122, and Healthcare Capital Corp. (“HCC”) (Nasdaq: HCCC), a special purpose acquisition company, today announced they have entered into a definitive business combination agreement (the “Business Combination”). Upon closing of the Business Combination, Alpha Tau is expected to be listed on the Nasdaq.<\/p>\n

Alpha Tau’s\u00a0proprietary Alpha DaRT\u2122 (Diffusing Alpha-emitters Radiation Therapy) enables highly potent and conformal alpha-irradiation of solid tumors through the intra-tumoral insertion of radium-224 impregnated sources mainly affecting the tumor, sparing the healthy tissue around it. In the company’s first-in-human clinical trial for Squamous Cell Carcinoma (“SCC”) tumors of the skin & oral cavity exhibited 100% overall response rate and approximately 78% complete response rate. In June 2021<\/span>, Alpha Tau received FDA Breakthrough Device Designation for the use of Alpha DaRT\u2122 in the treatment of SCC of the skin and oral cavity without curative standard of care.<\/p>\n

Alpha Tau has developed a robust clinical trial strategy with leading global centers, including its flagship US multi-center feasibility study currently ongoing, led at Memorial Sloan Kettering Cancer Center in New York<\/span>, which recently enrolled its first patient. <\/p>\n

A group of Healthcare-focused financial and strategic investors have committed to participate in the transaction through a fully committed ordinary share PIPE of approximately $92 million<\/span> at $10.00<\/span> per share. Investors in the PIPE include Yozma Investment Co. (part of Yozma Group Korea) and\u00a0Grand Decade Developments (an affiliate of China Grand Pharmaceutical and Healthcare Holdings) as well as other leading technology investors including OurCrowd, Regah Ventures and the co-founders of Apax Partners, Alan Patricof<\/span> and Sir Ronald Cohen<\/span>. Medison Group, an early supporter of Alpha Tau and global pharma company that provides access to highly innovative therapies to patients in international markets, is also an investor in the PIPE.<\/p>\n

“Following the recent enrollment of the first patient in our flagship US feasibility study and receipt of FDA Breakthrough Device Designation, this transaction represents another significant milestone on Alpha Tau’s journey to transform the treatment of solid tumors through the precision delivery of alpha radiation. We are grateful to the outstanding team at HCC, whose cadre of experienced and well-regarded professionals have provided superb execution and continued support for Alpha Tau, and we are excited for\u00a0Dr. David M. Milch<\/span> to join as our newest member of the Board of Directors\u00a0upon the closing of the business combination. We thank our investors, both new joiners as well as those who have supported us for years, who continue to demonstrate their faith in the company and its leadership,” said Uzi Sofer<\/span>, CEO and Chairman of Alpha Tau. “The completion of this transaction will allow the company to realize its vision and implement the clinical development plans and construction of our manufacturing plants around the world, in order to bring hope to millions of patients around the world.”<\/p>\n

“This transaction ensures that we are well capitalized\u00a0to accelerate our ambitious plans across multiple fronts,” said Raphi Levy<\/span>, CFO of Alpha Tau. “We look forward to delivering continued clinical momentum\u00a0and hope for patients as we evolve into a public company.”<\/p>\n

\n \u00a0<\/b>“We are excited about Alpha Tau’s unique therapy, which has generated a response observed across a wide array of solid tumors in pre-clinical studies, with minimal side effects, positioning it to potentially become a vital weapon in the battle against cancer,” said Dr. David M. Milch<\/span>.\u00a0 “After evaluating many opportunities in the healthcare industry, we believe that Alpha Tau stands out as the best choice for a business combination due to its proprietary technology, rapid clinical and product development and easy to administer treatment solution for the great number of cancer patients worldwide.”\u00a0 <\/p>\n

“It was a pleasure to work with the team at HCC as their due diligence advisor following my departure as Commissioner of the FDA in January 2021<\/span>,” said Dr. Stephen M. Hahn<\/span>.\u00a0 “My background as a medical and radiation oncologist helped me immediately appreciate the potential of Alpha Tau’s therapy in providing a solution for a potentially significant number of patients, including those with untreatable or difficult to treat tumors, whether alone or in combination with other therapies such as immunotherapies.\u00a0 I would expect the product to be well received by the clinical community because of the potential applications, modest side effect profile, and demonstrated potency of the Alpha DaRTTM<\/sup>“<\/p>\n

Proceeds of the business combination and the PIPE will be primarily used to: <\/p>\n