HealthBeacon’s former chief executive, Jim Joyce, who was ousted from his role last month after the medtech issued a sales warning, is among parties that have expressed an interest in taking part in a rescue investment in the company as it faces running out of cash, according to sources.
It is understood that Mr Joyce, who co-founded the company a decade ago, has signalled to the company that he is interested in committing funds, alongside some existing and new investors.
It is not clear what other investors are involved or whether this pitch would see HealthBeacon being taken private again or continue as a public company.
A spokesman for HealthBeacon declined to comment. Efforts to secure comment from Mr Joyce were unsuccessful.
The board of HealthBeacon, led by chairman Robert Garber, a partner in Chicago-based healthcare venture capital firm 7wireVentures, is racing to raise fresh funds after the company warned last week that it only has enough cash to keep trading until the final week in October.
The Irish Times reported on Tuesday that HealthBeacon has attracted parties interested in making an investment in the company or an outright purchase, at a time when partners in Grant Thornton, which is also HealthBeacon’s auditor, are advising on restructuring options, including the possibility of seeking examinership protection from its creditors.
While HealthBeacon has said it is making progress with the rollout of its technology across key distribution channels, including through key partnerships with US speciality pharmacy groups, the scale and complexity of implementations means that its current timelines are running up to nine months behind previous estimates.
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HealthBeacon had an initial market value of €98 million when it floated in December 2021. However, that had collapsed to €1.18 million by last Friday, when the company moved to have trading in its shares suspended until it could give clarity on its financial position.
The company said on October 5th that it was down to its last €500,000 of net cash, enough to continue trading until mid- to late November. It followed up last Friday to warn that its “short-term working capital” had subsequently deteriorated and that it only had enough funds to keep its doors open “until the last week of October”.
It is understood that supply chain partners had tightened up on trade credit as a result of the company’s worsening financial position and the chief executive’s exit.
The company said on Monday that Mr Joyce had decided to step down from his position as a non-executive director, which he had taken up after stepping down as chief executive.
