ProBiotix Health faces turmoil as calls for CEO’s resignation disrupt its leadership.
- A key shareholder, Seneca Partners, demands CEO Steen Andersen’s removal.
- Proposals also aim to block future board appointments at ProBiotix.
- Current leadership defends against what it deems unnecessary disruption.
- Recent financial struggles add pressure to the ongoing leadership crisis.
The biotech firm ProBiotix Health is embroiled in a leadership crisis following calls for the resignation of its CEO, Steen Andersen, by one of its largest shareholders, Seneca Partners. Seneca, possessing a 5.5% share in the company, has called for a general meeting to vote on Andersen’s removal, alongside a non-executive director linked to a major investor.
ProBiotix’s board has firmly rejected these proposals, criticizing them as “hugely disruptive”. They argue that the suggested resolutions would harm customer relationships and pose unnecessary financial burdens. The board insists that Andersen has executed his duties with professionalism, negating any past reasons for disciplinary measures.
Seneca Partners has not stopped at requesting the CEO’s dismissal. They have also proposed a restriction that would prevent the current board from appointing future directors, intensifying the governance conflict within the company.
Financial difficulties continue to loom over ProBiotix, adding another layer of complexity to the leadership conflict. Earlier this year, the company sounded the alarm over dwindling cash reserves and sought additional funding from shareholders, which was rejected, including by Seneca.
In response to the financial situation and to secure funding, ProBiotix turned to Danish entrepreneur Frederik Bruhn-Petersen, obtaining a £1.2 million share subscription. Controversy arose with Seneca when the investment was contingent upon appointing Bruhn-Petersen’s son to the board as a non-executive director.
ProBiotix Health’s situation remains precarious as it navigates shareholder disputes and financial challenges.
