A company with a focus on surgical robotics is finding its path to going public through a special purpose acquisition corporation (SPAC) merger. Memic Innovative Surgery said it has entered into a definitive agreement for a business combination with MedTech Acquisition Corp.
The deal is set to be completed in 4Q21. The combined company’s estimated cash balance will consist of MedTech's $250 million cash held in trust, assuming no redemptions by public stockholders, $76 million from the private placement of ordinary shares with investors (PIPE), and $63 million from the current balance sheet of Memic, less estimated transaction expenses and operational expenses through closing.
Once the deal has closed the company will operate under the Memic name.
Memic is developing the Hominis surgical robotics platform. Hominis won de novo marketing authorization from FDA in February for use in single site, natural orifice laparoscopic-assisted transvaginal benign surgical procedures, including benign hysterectomy. The company is also filing to get CE Mark designation for Hominis.
Memic said the small, compact, and mobile design of Hominis offers a minimal footprint, with simple docking and a short setup time for surgeons, without requiring a dedicated operating room. The company noted the technology can be purchased at a significant cost advantage compared to other available robotic technology.
"We believe the Hominis platform has the potential to transform the way surgeons perform robot-assisted procedures, beginning with our currently FDA-authorized indications that include transvaginal benign hysterectomy,” Dvir Cohen, co-founder and Memic CEO said. “Our partnership with the MedTech team, which provides decades of collective experience in surgical robotics, is an important step in bringing our advanced technology to medical facilities and patients across the U.S. and the world. We look forward to entering the public markets and working together with MedTech in the next phase of our company's journey."
Memic and the Medtech is the latest merger that continues to reinforce the growing trend of SPACS in medtech. Prior to this deal, Hyperfine announced it was merging with Liminal Sciences, a non-invasive brain monitoring specialist, and HealthCor Catalio Acquisition Corp through a SPAC.
And in June, Pear Therapeutics – a company known for its prescription digital therapeutics went through a SPAC with Thimble Point Acquisition Corp. The combined business is set to have an equity value of $1.6 billion with an expected $400 million in gross proceeds.