Somerset NHS Trust investment close to worthless
In early morning (8 April) trading on the London Stock Exchange), the value of Sensyne plc plunged to just 1.5p.
In November 2020 Somerset NHS Trust accepted an investment in Sensyne of over 1.4m shares. That was in exchange for providing 600,000 Somerset residents’ medical data – albeit anonymised.
The Trust has continued to assert this will have no impact on its finances.
The investment was worth over £1.7m in November 2020. Today the shares are worth approximately £20,000.
Sensyne has run out of money despite a refinancing in January this year. This morning it reported having just £1.5m cash left and it continues to be heavily loss making.
A deal is being proposed to rescue the company. As part of that deal the company will lose its AIM listing. A new Chief Executive has been appointed and Lord Drayson, the company founder will step down from the board.
As a private company the shares will no longer be easily tradable. And the value of the shares will be heavily diluted by the new shares and convertible loan notes being issued to refinance the company.
If the Trust do not recognise that they have lost out, Sensyne apparently does.
A statement from the company this morning noted “The Board and the Noteholders recognise the importance of the NHS Trusts relationships in the future of a private, restructured and refocused business and the Noteholders have agreed that they will commit to take reasonable steps to exercise their rights under the amended and restated NPA in a manner that: (i) continues the Company’s ethical use of patient data; (ii) is consistent with the Company’s goal of enabling the Company to realise its mission to become the leader in the ethical application of clinical AI to health data, to improve patient care and accelerate medical research; and (iii) allows for a sustainable commercial model to be put in place with the NHS Trusts that reflects the value of patient data supplied to the Company by the NHS Trusts.“
It is not very specific. But it does recognise that the NHS Trusts who engaged with Sensyne, including Somerset, have lost out.
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