Babylon Health is finalizing its decision to go private by accepting a proposal in conjunction with MindMaze, a digital health company focused on brain health.
The proposal comes from London-based investment manager AlbaCore Capital Group, which secured a term loan to Babylon Health in November 2021. The transaction will not provide payouts for the loans. shareholders of Babylon, this is a condition of AlbaCore’s lending facility, according to a regulatory filing with the Securities and Exchange Commission. The original deal between AlbaCore and Babylon granted Babylon $200 million through 2026.
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The core operations of Babylon will be transferred to MindMaze. AlbaCore Capital Group funded a $125 million investment in MindMaze to accelerate the commercialization and expansion of its digital neurotherapy platform in October 2021, a month before securing a loan for Babylon.
The transaction with MindMaze is expected to close next month. Babylon will cease trading on the New York Stock Exchange, pending regulatory and other regulatory approval. The deal provides a new capital structure and debt relief, according to a statement from a Babylon spokesperson. The statement said existing businesses will receive immediate material funding.
According to a press release, the combined company will focus on improving patient engagement and access to high-quality optimized healthcare by addressing a wide range of situations. Chronic conditions including neurological conditions.
AlbaCore declined to comment further. MindMaze did not respond to multiple requests for comment.
Babylon, an AI-powered medical appointment booking and virtual diagnosis company founded in London in 2013, went public in October 2021 through the merger of a special purpose acquisition company. with Alkuri Global Acquisition Corp. At the time, a Babylon spokesperson said the transaction was expected to bring the company total revenue of about $575 million and be valued at $4.2 billion.
SPAC streamlines the process of launching stock markets, acquiring companies, taking them public, and raising capital through initial public offerings. SPACs must spend the money they raise within two years or return it to investors.
Babylon opened at $250.25 a share, and the stock shot up to a peak of $292.75 a share on October 27, 2021. On Friday afternoon, its shares were traded. trading around 48 cents a share, down 22% from the first day’s opening price of 61 cents a share.
Babylon CEO Dr Ali Parsa wrote in October 2021, the company’s revenue has grown by 394% from 2020 to 2021 and increased by 472% in the first half of 2021. Parsa previously predicted the company The company will be profitable in the near future. “That could be the end of [2024] or head of [2025]. That doesn’t matter,” he said at the JP Morgan Medical Conference in San Francisco in January. “We will break even.”
