Sensyne Health PLC plummeted on Friday after the biotechnology said the amendments of its note purchase agreement provides an option to cancel the admission of shares to trading on the market.

Shares were trading 68% lower at 3.20 pence each on Friday around midday in London and has plunged 98% from its August 2018 initial public offering price of 175p.

The company said among the terms of the amendment, attention is specifically drawn to the proposed term to cancel its shares from trading on AIM, as well as ‘the highly dilutive impact of granting conversion rights to the noteholders and the proposed change in the exercise price of the warrants associated with the loan notes.’

Earlier, the company 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.

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 £11.4 million financing agreement.

The financing came from a loan note with its institutional shareholders, with a first tranche of £6.4 million, and an additional tranche of £5 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 £15 million in financing.

The company stated that it will likely to be unable to continue trading beyond this month without it.

‘Shareholders’ attention is specifically drawn to the proposed term to cancel the company’s shares from trading on AIM and the highly dilutive impact of granting conversion rights to the noteholders and the proposed change in exercise price of the warrants associated with the loan notes,’ it said.

Still, Sensyne noted that it believes the financing will proceed to completion.

Chair Bruce Keogh commented: ‘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,’

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