ProBiotix Health finds itself amid a leadership crisis, as significant shareholders demand a change in CEO.
- Seneca Partners, holding 5.5% of shares, has initiated a move for CEO Steen Andersen’s removal.
- The board of ProBiotix strongly opposes these proposals, citing potential disruption and costs.
- A previous rejection from Seneca for a funding request led to Danish investment, stirring the current dispute.
- Despite these tensions, ProBiotix shares remain unchanged, reflecting market stability amid the crisis.
ProBiotix Health has encountered a significant leadership challenge, following demands from one of its major shareholders for a change in executive leadership. Seneca Partners, which maintains a 5.5% stake in the firm, has initiated a general meeting of shareholders to vote on the removal of CEO Steen Andersen and a non-executive director associated with a key investor.
The board of ProBiotix has countered these proposals vigorously. They labelled the motion as “hugely disruptive”, arguing that it would damage customer relationships and incur unnecessary costs. They further asserted that “the proposed resolutions are not in the best interests of the company”, especially at a crucial moment when the firm is gaining commercial momentum.
Seneca Partners’ demand comes after ProBiotix’s unsuccessful bid in June to secure additional capital. The firm had sought shareholders’ support for a financial boost, which was declined, including a rejection from Seneca. Subsequently, ProBiotix engaged Danish entrepreneur Frederik Bruhn-Petersen to inject £1.2 million into the company.
This investment was secured on the condition that Frederik Bruhn-Petersen’s son would be appointed to the board as a non-executive director. Seneca has since contested this appointment, arguing against the board’s future director appointments without broader consent. The board, however, sees this inclusion as a justified decision given the substantial financial backing provided.
ProBiotix’s statement highlighted the strategic importance of having a “supportive shareholder with a long-term focus”, suggesting that such relationships are pivotal for securing the company’s future funding. Meanwhile, ProBiotix Health’s share value remained stable in early trading, underscoring investor confidence or a wait-and-see approach amid the ongoing leadership turmoil.
The ongoing dispute at ProBiotix highlights the complex dynamics between shareholders and management amid critical business decisions.
