Better Therapeutics Deal Above Board, SPAC Sponsor Tells Court

The high percentage of shares redeemed in the blank-check deal that took Better Therapeutics Inc. public shows that stockholders had enough reliable information about the merger to participate, an attorney for Mountain Crest Capital LLC argued Wednesday before the Delaware Chancery Court.

Mountain Crest, a serial SPAC sponsor, seeks to dismiss an investor’s challenge to the $187 million merger between the digital therapeutics business and a special purpose acquisition company. The investor claims stockholders received misleading information about the transaction that provided a windfall to insiders.

Over 84% of shares were redeemed in connection with the deal, said Andrew Sauder ...