ProBiotix Health faces a significant leadership challenge as one of its major shareholders calls for the CEO’s resignation, sparking turmoil within the company.
- Seneca Partners, a key shareholder with a 5.5% stake, has called for a general meeting to vote on the CEO’s removal.
- The proposals to remove the CEO have been rejected by ProBiotix’s board, citing potential damage to customer relations and unnecessary disruption.
- ProBiotix previously faced financial struggles, seeking fresh capital, which led to a substantial investment on the condition of board changes.
- The company’s shares remained stable amid the unfolding governance dispute.
ProBiotix Health has entered a period of uncertainty as Seneca Partners, holding a 5.5% stake, demanded the resignation of CEO Steen Andersen. The shareholder has requested a general meeting for a vote on the removal of the CEO and a non-executive director associated with a major investor.
The board of ProBiotix has categorically rejected these demands, stating that such actions would disrupt operations and harm relationships with customers. The board further argued that the CEO, Steen Andersen, has shown professionalism with no prior grounds for disciplinary action.
Earlier this year, ProBiotix warned of dwindling cash reserves and sought additional funding from its shareholders, a request which Seneca Partners also declined. Instead, the company successfully secured a £1.2 million investment from Danish entrepreneur Frederik Bruhn-Petersen.
This investment was contingent upon appointing Frederik Bruhn-Petersen’s son to the board as a non-executive director, a condition that Seneca Partners has contested. The board defended this decision, deeming it a reasonable request given the significant investment.
Despite the governance challenges, ProBiotix Health’s share price has remained unchanged in early trading, suggesting a wait-and-see approach from investors.
The unfolding events at ProBiotix Health exemplify the complexities and challenges in corporate governance amidst financial pressures.
