26th Jan 2022 12:09
(Alliance News) - Sensyne Health PLC's shares rose sharply on Wednesday after the clinical artificial intelligence company said it completed an GBP11.4 million financing agreement.
The Oxford, England-based firm said 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 by mutual consent.
Sensyne's share price was up 25% to 19.00 pence each in London on Wednesday at midday. It has dropped 77% since the start of 2022.
The proceeds will fund the business through its formal sales process and follows a warning earlier in the month that the company would not be able to trade beyond February without further cash.
Chief Executive Officer Paul Drayson has proposed he take a token GBP1 base salary per year while the loan notes are outstanding, to which Sensyne has agreed. Having previously sought approval for a management buyout, Drayson has now committed to vote for any offer for Sensyne in the formal sales process that is deemed to maximise value for shareholders, or is recommended by its directors. Drayson is interested in 35% of Sensyne's capital.
By Elizabeth Winter; [email protected]
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