Oxford AI company Sensyne completes financing round

Paul Drayson

Sensyne Health plc, the UK clinical AI company, says it has successfully completed the financing announced on 14 January 2022.

This follows warnings from the board that without an emergency cash injection, the company would be unable trade beyond early February 2022.

The financing comprises up to £11.35 million (comprising a first tranche of £6.35 million and an additional tranche of £5 million by mutual consent) and will fund the business through the ongoing Formal Sale Process.

Sensyne founder and CEO, Lord Paul Drayson, has confirmed his commitment to the company’s mission and its unique ethical business model for the use of anonymised patient data in medical research in partnership with the NHS and health systems world-wide.

He has proposed, and the company has agreed, that he will reduce his base salary to £1 per annum while the Loan Notes are outstanding and he has committed to vote for any bid for the company that results from the Formal Sale Process that is consistent with the company’s mission and maximises value for shareholders or is recommended by the independent Directors.

Prof Sir Bruce Keogh, Chairman, said: “I am grateful to shareholders for their support in providing this financing, which puts the company in a position to complete the Formal Sale Process.”

As of 24 January 2022, the company’s unaudited cash position was £2.5 million. The unaudited adjusted operating loss for the six months ending 31 October 2021 was £14.7 million and the unaudited revenue figure for the same period was £1.0 million. The company has sought  funding from a number of different sources and due to the pressing need for additional working capital, and on 14 January it announced that it had signed a non-binding term sheet with a number of its institutional shareholders and Peel Hunt to provide £6.35 million of capital (with an additional £5 million which may be provided by mutual consent) to finance the Company over the coming months as it proceeds through to the outcome of the ongoing Formal Sale Process.

On 25 January 2022 the Company and Excalibur Healthcare Services agreed to amend the terms of the Licence and Development Agreement signed 9 February 2021. Pursuant to the amended terms, Excalibur’s licence to use MagnifEye becomes non-exclusive with immediate effect. The Company will continue to receive a royalty on sales made by Excalibur, but guaranteed minimum royalties are removed. The Company will now seek additional commercial partners for MagnifEye, which comprises a suite of eight algorithms that can be used to automate and improve the accuracy of reading lateral flow diagnostic tests, with applicability beyond COVID-19 to a wide range of industrial applications, both clinical and non-clinical. Excalibur can also market and partner its own tests with MagnifEye to existing and new customers for all applications. 

Sensyne Health, founded by former UK science minister Lord Paul Drayson has partnerships with NHS trusts and healthcare systems. It has access to detailed information on demographics, diagnosis, treatment, medication, biochemical and genetic tests and procedures, images, pathology, vital signs and genomics data.