Sensyne Health plc today announced a finance update, including an update on its continuing Formal Sale Process (“FSP”) and a change to the Board, following the Company’s receipt of terms from its secured lenders to access additional capital of up to £15 million to enhance its financial position.
The proposed funding includes a stipulation that the Company delist from AIM, among other things.
Lord Drayson, the company’s founder and CEO, has agreed to resign from the Board of Directors with immediate effect, and Mr Alex Snow has been appointed as the new CEO. Alex is a seasoned entrepreneur with a track record of success in both finance and the commercialization of world-class science through public-private partnerships in the United Kingdom.
Alex Snow’s appointment will become effective upon the implementation of revisions to the note purchase agreement (details of which were disclosed on January 26, 2022) that would provide extra capital to continue to fund the business (see Financial Position Update below).
This is likely to happen within the next ten days, at which point Dr. Richard Pye (Chief Financial Officer) will take over as CEO.
The Board expects Alex to restructure and refocus the business on its core real world patient data business unit over the coming months, with the support of the Noteholders, and work in partnership with the National Health Service and the Life Sciences community to develop and discover new medicines and improve patient outcomes through the analysis of anonymized real world patient data.
Alex and the Noteholders have agreed to carry on the business in accordance with Sensyne’s goal and principles, as well as the company’s leading standards in the ethical application of clinical AI to health data.
Alex Snow is a seasoned entrepreneur with executive leadership expertise and a track record in AI drug development.
Alex has a solid expertise in both finance and data-driven life science entrepreneurship and investing.
He just stepped down as Chairman of Exscientia, an AI drug discovery startup, just before its $2.6 billion Nasdaq IPO. He co-founded Oxford Sciences Innovation Plc (OSI), currently known as Oxford Science Enterprises, in 2015 with the goal of commercialising world-class science developed at Oxford University.
Alex spent 20 years in investment banking and fund management prior to joining OSI, including as the CEO of Lansdowne Partners UK LLP, a long-time shareholder in Sensyne, and as the founder and CEO of Evolution Group, a UK mid-market investment banking and wealth management firm sold to Investec Bank.
On January 26, 2022, the Company entered into a note purchase agreement (“NPA”) and warrant instrument with Gatemore Capital Management LLP, Lansdowne Partners LLP, and Sand Grove Capital Management LLP (collectively, the “Noteholders”), as well as Peel Hunt LLP (solely because Peel Hunt LLP receives the majority of its fee in loan notes), to secure £6.35 million in loan notes and an additional £5 million in loan notes to be drawn down by mutual consent.
The total proceeds of £11.35 million were projected to cover the Company’s short-term financing needs and continue to fund the business through the FSP. The Company and the Noteholders have agreed to alter the NPA to issue up to £15 million in additional loan notes in a non-binding term sheet.
The first tranche of new loan notes will be worth £5 million and will be accompanied by warrants to subscribe for 8,239,957 ordinary shares at a price of £0.10. Additional loan note funding will be drawn down in tranches up to a maximum of £15 million in total (including the initial tranche).
The new loan notes will be convertible into ordinary shares, and the current loan notes will be amended to include conversion rights.
