Babylon Holdings Limited has announced plans to take the multinational digital health firm private and has entered into a new funding agreement with Albacore Capital LLP for a secured term loan facility for up to $34.5 million to support the company's plans to delist.
As part of the long-term funding plan, that includes the restructure of the companies debt, it is envisaged that Babylon will return to private ownership.
In Q1 of 2023, Babylon reported total revenue of $311.1 million compared with $266.4 million in Q1 2022, primarily due to an increase in value-based care revenue. Babylon reported a loss of $63.2 million for the period, compared with a loss of $29.1 million in Q1 2022, noting that this included a $78.8 million gain related to Babylon going public.
In 2021, Babylon’s was publicly listed in the U.S following a special acquisition company (SPAC) merger with Alkuri Global Acquisition. At its peak in October 2021, shares were valued at $272.5 (£215m), therefore the recent valuation was less than 1% of the 2021 peak.
"We took our stock public in October '21 through a SPAC, and we had to choose a SPAC for exactly the reason you said – we had 400% growth," Parsa said. "It cost us a lot to go that way, and, more importantly, it left us with almost no U.S. shareholders. So, you're in the U.S. New York Stock Exchange with no U.S. shareholder base supporting your stock."
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