Pear Therapeutics and Thimble Point Acquisition Corp. Announce Effectiveness of S-4 Registration Statement and Set November 23, 2021 for Thimble Point Special Stockholder Meeting to Vote on Proposed Business Combination

Rhea-AI Summary

Thimble Point Acquisition Corp. (Nasdaq: THMA) has scheduled a special shareholder meeting on November 23, 2021 to approve its business combination with Pear Therapeutics. Upon completion, the new entity will trade as Pear Holdings Corp. under the ticker symbol 'PEAR'. Pear anticipates revenue of $4.0 million for 2021 based on early results. The deal values Pear at a pro forma equity value of approximately $1.6 billion and includes a PIPE investment anticipated to raise $125 million. Shareholders will own around 72% of the combined company.

Positive

• Business combination expected to create a new publicly traded entity, enhancing market visibility.
• Anticipated revenue of $4.0 million for 2021, indicating growth potential.
• Pro forma equity value of approximately $1.6 billion, showcasing significant market capitalization.
• PIPE investment projected to raise $125 million for further growth.

Negative

• Potential risks associated with the timing and completion of the transaction could affect stock performance.
• Dependence on shareholder approval could delay the business combination.
• Integration challenges may arise post-transaction, impacting operational efficiency.

• Special meeting of Thimble Point Acquisition (Nasdaq: THMA) shareholders to approve the proposed business combination scheduled for November 23, 2021 at 9:00 a.m. Eastern Time

• Upon Closing, the Combined Company will trade on the NASDAQ under the ticker symbol “PEAR”

• Based on reported first half revenues and a preliminary review of third quarter revenue, Pear reaffirms its 2021 guidance of $4.0 million in revenue

BOSTON--(BUSINESS WIRE)-- Pear Therapeutics, Inc. (“Pear”), the leader in developing and commercializing prescription digital therapeutics (“PDTs”) to treat serious disease, and Thimble Point Acquisition Corp. (“Thimble Point”) (Nasdaq: THMA) announced today that the U.S. Securities and Exchange Commission (“SEC”) has declared effective Thimble Point’s registration statement on Form S-4 relating to the previously announced business combination (the “Business Combination”) between Pear and Thimble Point.

A special meeting of Thimble Point shareholders will be held at 9:00 a.m. Eastern Time on November 23, 2021 in connection with the Business Combination (the “Special Meeting”). The Special Meeting will be held as a virtual meeting only via live audio webcast at https://www.cstproxy.com/thimblepoint/2021.

If the proposals at the Special Meeting are approved, the parties anticipate that the Business Combination will close shortly thereafter, subject to the satisfaction or waiver (as applicable) of all other closing conditions.

Upon closing of the transaction, the combined company will be named Pear Holdings Corp. (the “Combined Company”) and will be listed on Nasdaq under the ticker symbol “PEAR.”

“This is an important milestone on our path to becoming a publicly-traded company,” said Corey McCann, M.D., Ph.D., Pear’s President and Chief Executive Officer. “We intend to use the proceeds from this transaction to continue commercialization of our three FDA-authorized PDTs, to further our pipeline, and to enhance our market-leading PDT platform. We continue to demonstrate real-world health economic evidence for our FDA-authorized products, helping to drive recent coverage adoption by several private and public payers. The Pear team is well-positioned to further our position as the leader in software to treat serious disease.”

Elon Boms, Chief Executive Officer and Chairman of Thimble Point Acquisition Corp. and Managing Director of the Pritzker Vlock Family Office, an affiliate of Thimble Point’s sponsor, commented: “The Pear team continues to execute successfully and is poised for rapid growth as they build a new category of medicines. We look forward to presenting the business combination to Thimble Point stockholders and are proud to continue partnering with Pear through its next phase of growth.”

Additionally, Pear believes that its revenue growth remains on pace for achieving its $4.0 million revenue forecast for fiscal year 2021.

As previously announced, the Business Combination values the Combined Company at a pro forma equity value of approximately $1.6 billion. Upon closing of the Business Combination, the Combined Company expects to obtain (i) $125 million in cash, at $10.00 per share, from an upsized PIPE with participation from leading healthcare and technology investors, including 5AM Ventures, Arboretum Ventures, Blue Water Science Advisors, LLC, dRx Capital (Novartis Pharma AG), The Eleven Fund, FORTH Management, Health Innovation Capital (HIC), JAZZ Venture Partners, a leading integrated delivery network, Neuberger Berman funds, Palantir, Pilot House, Pritzker Vlock Family Office, QUAD Investment Management, Sarissa Capital, Shanda Group, SoftBank Vision Fund 2, Temasek, and Trustbridge Partners and (ii) subject to redemptions, up to approximately $276 million in cash held in Thimble Point’s trust account, less transaction expenses expected to be approximately $30 million.

All existing Pear equity holders will roll the entirety of their equity holdings into the Combined Company and are expected to hold approximately 72% of the issued and outstanding equity of the Combined Company immediately following the closing.

Net proceeds from the Business Combination will be used to further capitalize Pear’s category-leading position by investing in commercialization of Pear’s three FDA-authorized products, advancing Pear’s pipeline, and scaling its end-to-end platform.

Advisors

BofA Securities and Citi are acting as financial advisors to Pear and placement agents on the PIPE Transaction. BTIG and Chardan are serving as co-advisors. Citi and Cowen are acting as capital markets advisors to Pear. Goodwin Procter LLP and Foley Hoag LLP are acting as legal advisors to Pear. Shearman & Sterling LLP is acting as legal advisor to the placement agents.

Credit Suisse is acting as financial advisor to Thimble Point. Sullivan & Cromwell LLP is acting as legal advisor to Thimble Point.

About Thimble Point Acquisition Corp.

Thimble Point Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The Company intends to focus on high-growth software and technology-enabled companies that are disrupting large and established industries and markets, and is led by Elon S. Boms, the Company’s Chief Executive Officer and Chairman, and Steven “Woody” Benson, the Company’s Chief Operating Officer and Director. The members of the Company’s management team are associated with the Pritzker Vlock Family Office, a multi-billion-dollar family office that invests in companies and their management teams with industry changing ideas, as well as LaunchCapital, a premier venture capital firm with offices in Boston, New Haven and New York.

About Pear Therapeutics

Pear Therapeutics is the leader in prescription digital therapeutics, or PDTs. Pear aims to redefine medicine by discovering, developing, and delivering clinically validated software-based therapeutics to provide better outcomes for patients, smarter engagement and tracking tools for clinicians, and cost-effective solutions for payers. Pear has a pipeline of products and product candidates across therapeutic areas, including the first three PDTs with disease treatment claims from FDA. Pear’s lead product, reSET^®, for the treatment of substance use disorder, was the first PDT to receive marketing authorization from FDA to treat disease. Pear’s second product, reSET-O^®, for the treatment of opioid use disorder, was the first PDT to receive Breakthrough Designation. Pear’s third product, Somryst^® for the treatment of chronic insomnia, was the first PDT submitted through FDA’s traditional 510(k) pathway while simultaneously reviewed through FDA’s Software Precertification Pilot Program. For more information, visit Pear at www.peartherapeutics.com.

Important Information and Where to Find It

BEFORE MAKING ANY VOTING DECISIONS, STOCKHOLDERS OF THIMBLE POINT AND PEAR ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE BUSINESS COMBINATION AND RELATED TRANSACTIONS. THIMBLE POINT HAS FILED A REGISTRATION STATEMENT ON FORM S-4 WHICH INCLUDES A PROXY STATEMENT AND PROSPECTUS. The proxy statement/prospectus has been declared effective and will be sent to all Thimble Point stockholders of record at the close of business on October 18, 2021 for voting on the proposed business combination and other matters to be voted upon at a special meeting of Thimble Point’s stockholders (the “Special Meeting”). The definitive proxy statement/prospectus contains important information about the proposed business combination and the other matters to be voted on at the Special Meeting and is not intended to provide the basis for any investment decision or any other decision in respect of such matters.

Investors and security holders will be able to obtain the documents free of charge at the SEC’s web site, http://www.sec.gov, and Thimble Point stockholders will receive information at an appropriate time on how to obtain transaction-related documents free of charge from Thimble Point. Such documents are not currently available.

Participants in the Solicitation

Thimble Point and Pear and their respective directors and officers may be deemed to be participants in the solicitation of proxies from Thimble Point’s stockholders in respect of the proposed transactions. Information about Thimble Point’s directors and executive officers and their ownership of Thimble Point’s securities is set forth in Thimble Point’s filings with the SEC, including Thimble Point’s Registration Statement on Form S-1, which was declared effective by the SEC on February 1, 2021. To the extent that holdings of Thimble Point’s securities have changed since the amounts printed in Thimble Point’s Registration Statement on Form S-1, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Additional information regarding the interests of those persons and other persons who may be deemed participants in the proposed transaction may be obtained by reading the proxy statement/prospectus regarding the proposed transaction when it becomes available. You may obtain free copies of these documents as described in the preceding paragraph.

Forward-Looking Statements

Certain statements, estimates, targets and projections in this press release may be considered forward-looking statements within the meaning of the federal securities laws with respect to the proposed transaction between Thimble Point and Pear. Forward looking statements generally relate to future events or involving, or future performance of, Thimble Point or Pear. For example, statements regarding anticipated growth in the industry in which Pear operates and anticipated growth in demand for Pear’s products, projections of Pear’s future financial results and other metrics, the satisfaction of closing conditions to the proposed transaction between Thimble Point and Pear (the “proposed transaction”) and the timing of the completion of the proposed transaction are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “pro forma”, “may”, “should”, “could”, “might”, “plan”, “possible”, “project”, “strive”, “budget”, “forecast”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Thimble Point and its management, and Pear and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the risk that the proposed transaction, including the contemporaneous private placement of equity securities (the “PIPE investment”), may not be completed in a timely manner or at all, which may adversely affect the price of Thimble Point’s securities; (ii) the risk that the proposed transaction may not be completed by Thimble Point’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by Thimble Point; (iii) the lack of a third party valuation in determining whether or not to pursue the proposed transaction; (iv) the amount of the costs, fees, expenses and other charges related to the proposed transaction and PIPE investment; (v) the outcome of any legal proceedings that may be instituted against Thimble Point, Pear, the combined company or others following the announcement of the Business Combination Agreement relating to the proposed transaction, the ancillary agreements contemplated thereby and the transactions contemplated thereby; (vi) the inability to complete the proposed transaction due to the failure to obtain approval of the stockholders of Thimble Point or Pear to obtain financing to complete the proposed transaction or to satisfy other conditions to closing; (vii) changes to the proposed structure of the proposed transaction that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining regulatory approval of the proposed transaction; (viii) the ability to meet stock exchange listing standards following the consummation of the proposed transaction; (ix) the risk that the proposed transaction disrupts current plans and operations of Pear or diverts management’s attention from Pear’s ongoing business operations and potential difficulties in Pear employee retention as a result of the announcement and consummation of the proposed transaction; (x) the ability to recognize the anticipated benefits of the proposed transaction, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (xi) costs related to the proposed transaction; (xii) changes in applicable laws or regulations; (xiii) the possibility that Pear or the combined company may be adversely affected by other economic, business, regulatory, and/or competitive factors; (xiv) Pear’s estimates of expenses and profitability; (xv) the evolution of the markets in which Pear competes; (xvi) the ability of Pear to implement its strategic initiatives and continue to innovate its existing products; (xvii) the ability of Pear to defend its intellectual property and satisfy regulatory requirements; (xviii) the ability of Thimble Point to issue equity or equity-linked securities in connection with the proposed transaction or in the future; (xix) the impact of the COVID-19 pandemic on Pear’s business; and (xx) other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Thimble Point’s final prospectus dated February 1, 2021 relating to its initial public offering and other risks and uncertainties indicated in Thimble Point’s registration statement on Form S-4 (File No. 333-257982) (the “Registration Statement”), which was declared effective by the SEC on October 26, 2021, and the definitive proxy statement/prospectus included therein, including those set forth under “Risk Factors” therein, and other documents filed and to be filed with the SEC by Thimble Point. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.

Readers are cautioned not to put undue reliance on forward-looking statements, and Thimble Point and Pear assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Neither Thimble Point nor Pear gives any assurance that either Thimble Point or Pear will achieve its expectations. The inclusion of any statement in this communication does not constitute an admission by Thimble Point or Pear or any other person that the events or circumstances described in such statement are material.

Non-Solicitation

This press release does not constitute (i) a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed Business Combination or (ii) an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any security of Thimble Point Acquisition Corp., Pear, or any of their respective affiliates. No such offering or securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. This press release may be deemed to be solicitation material in respect of the proposed transactions contemplated by the Business Combination Agreement between Pear and Thimble Point.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211027005314/en/

Thimble Point Acquisition Corp.:

Jason Gray

inquiry@thimblepoint.com

Pear Therapeutics Media and Investors:

Meara Murphy

Senior Director of Corporate Communications

meara.murphy@peartherapeutics.com

Argot Partners

pear@argotpartners.com

Golin

golinpear@golin.com

Source: Pear Therapeutics, Inc.

FAQ

What is the purpose of Thimble Point Acquisition's special meeting on November 23, 2021?

The meeting is to approve the proposed business combination with Pear Therapeutics.

When will the combined company start trading under the ticker symbol 'PEAR'?

The combined company will trade under 'PEAR' upon closing of the business combination expected shortly after the special meeting.

What is the projected revenue for Pear Therapeutics in 2021?

Pear reaffirms its revenue guidance of $4.0 million for the fiscal year 2021.

What is the pro forma equity value of the combined company post-transaction?

The combined company is valued at approximately $1.6 billion.