Medtech firm HealthBeacon warns it only has a few weeks of cash left

HealthBeacon listed on the Euronext Dublin exchange in 2021. 

The board of Dublin-based medtech firm HealthBeacon has said the company only has enough cash to continue to trade for another few weeks and “requires additional financing urgently”.

In an update on financial discussions, the board of HealthBeacon said its short-term working capital position has “deteriorated” and it now believes the company “only has sufficient cash to continue to trade until the last week of October 2023”.

As of the end of September, the company had approximately €500,000 in net cash on its balance sheet. At the time, it expected to have sufficient cash to continue to trade until mid to late November.

Since October 5, the company said it has been exploring various options to improve its short-term financial position as well as longer-term funding requirements including “discussions with key stakeholders and other providers of capital, and explored the potential sale of its business divisions”.

“These financing alternatives have not to date been concluded, however, the company continues to pursue funding solutions,” the update said.

The board said the company is now in a “highly constrained financial position” and “requires additional financing urgently in order to continue as a going concern”.

It added that it is continuing to explore all options to raise finance and otherwise to maximise the interests of creditors and other stakeholders.

Last month, Jim Joyce, chief executive of HealthBeacon, stepped down after it issued a sales warning. He remained on as an advisor and non-executive director.

During the financial year 2022, the company saw its losses nearly double to €13.2m as it dealt with a number of challenges including building out its delivery infrastructure in the US.

HealthBeacon was founded in Ireland in 2013. It specialises in digital therapeutics and develops products for managing injectable medications for patients in the home.

The company was taken public in 2021 and is listed on the Euronext Dublin exchange.