Digital health company Simavita (ASX:SVA) has announced the completion of a review of its Board, operations, executive management and working capital.
With immediate effect, changes to the Board have been implemented, new funding facilities have been made available and a change to the future strategy of the company has commenced.
It has also applied for immediate re-quotation of its securities on the ASX and to lift the halt on the Canadian TSX Venture Exchange.
Mr Michael Spooner and Dr Gary W. Pace have been appointed non-executive Chairman and non-executive Director respectively. As a consequence of the changes to Board composition and review of strategic direction, the Chairman of Simavita, Mr Michael Brown, and Managing Director, Ms Philippa Lewis, have both agreed to step down.
Mr Spooner is a well-known company director with an established and successful track record in international finance and in the rapid growth of publicly listed companies. He is a current and past board member of a number of listed corporations, including dual listed Mesoblast. He is a past partner with two of the world’s largest international consulting firms.
Dr Pace is a seasoned biopharmaceutical executive with over 30 years of experience in the industry. He has co-founded a number of early stage life science companies, where he built products from the laboratory to commercialisation. Dr Pace is currently a Director of ResMed.
The company has also issued secured notes which has raised AUD$3,063,000 to assist in meeting the its "immediate obligations" and to provide a "clear runway" for a major restructuring of its operations and implementation of a new strategy.
It said it is also in final discussions with other major shareholders and investors with the objective of raising further funds of around $3.4 million.
"Fundamental to the changes being implemented will be a review of the Company's strategy to significantly build on sales in the short term, particularly within the US and to immediately and materially reduce and refocus costs away from overheads," said the company.
“I’m delighted to be appointed to the Board of Simavita. I believe that this is a company and technology with significant market potential far beyond its current status," said incoming Non-Executive Chairman, Mr Michael Spooner.
"Our opportunity is to rapidly build a commercially focused business and to bring with us those who have committed to the future of the Company. I am particularly focused on building shareholder wealth and to communicating regularly and clearly on the progress of the Company,” he said.
In relation to the new Board composition, Craig Holland and Warren Bingham will remain on the company’s Board for a transitional period pending the appointment of new directors.
Ms Peta Jurd has resigned as Interim Chief Financial Officer of the Company. She will remain as Chief Commercial Officer.
"As indicated, the newly constituted Simavita Board will undertake a strategic review with the objective to maximise shareholder value and also review working capital requirements / expenditure program. As part of that review, the current position of Managing Director / Chief Executive Officer has become redundant. This review will also include role and scope of duties of the Company’s executive team and exploring potential new financing opportunities," said the company.