Digital health firm Babylon has announced that its proposed business combination with digital Neurotherapy company MindMaze is no longer moving forward.
As a result, Babylon plans to sell its U.K. business to third parties and exit its U.S. business. The initial deal with MindMaze, which aimed to create a global privately owned AI-driven care platform, was expected to close in July.
However, Babylon has not received additional funding to continue its business operations, and it is now exploring strategic alternatives for its U.K.-based business. The company will also seek a buyer for its independent physicians association, Meritage Medical Network.
If a third-party sale or additional funding is not secured, Babylon may have to file for bankruptcy protection or implement other alternatives.
Class A shareholders are not expected to receive proceeds from any potential sale due to existing debt agreements with AlbaCore Capital.
Click here to read the original news story.