(Alliance News) - Shares in Sensyne Health PLC plummeted on Friday after it warned that without further financing it will not be able to continue beyond this month and that its chief executive officer and founder has stepped down.
Shares were trading 72% lower at 2.80 pence each on Friday morning in London.
The Oxford, England-based clinical artificial intelligence company said Chief Executive and founder Paul Drayson stepped down from the board with immediate effect. He will be replaced by Alex Snow, former CEO of Landsdowne Partners UK LLP, who has "extensive experience" in finance and the commercialisation of science.
On January 26, Sensyne said it secured a GBP11.4 million financing agreement.
The financing came from a loan note with its institutional shareholders, with a first tranche of GBP6.4 million, and an additional tranche of GBP5 million.
Sensyne explained that it has entered a non-binding term sheet with noteholders to amend the original note purchase agreement to provide an additional GBP15 million in financing.
The company stated that it will likely to be unable to continue trading beyond this month without it.
It still noted that it believes the financing will proceed to completion.
"I am grateful to the noteholders for their continued support in providing this financing, despite the difficulties the business has faced over the past few months. This financing provides both the certainty of a future for Sensyne as an independent life sciences focused business and the opportunity to conclude the ongoing formal sales process. We will of necessity need to reduce our cost base and propose changes at a future general meeting that will have a significant impact on our shareholders' interests," Chair Bruce Keogh commented.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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