Shares of digital healthcare services provider Babylon Holdings (NYSE:BBLN) are tanking today after it declared first-quarter numbers and announced its plans to go private.
Revenue rose 17% year-over-year to $311.1 million but missed the cut by $25.8 million. Net loss per share at $2.53 though landed narrower than estimates by $0.15. During the quarter, BBLN witnessed a better VBC revenue mix and the company continues to execute on cost-reduction initiatives.
Separately, BBLN announced that it has amended and restated its senior secured term loan facility with AlbaCore Capital for an additional funding of ~$34.5 million.
This interim funding is expected to provide liquidity for Babylon’s operations and enable it towards a long-term funding and take private solution.
Under this framework, Babyon’s core operating subsidiaries will transition back to private ownership. The company’s board has given its approval to the move and Babylon expects to receive the interim funds in May and early next month.
As a consequence of the move, Babylon has withdrawn its outlook for 2023 and canceled the conference call that was slated for today. Further, a transition to private ownership and the surprise announcement seems to have spooked investors and the stock is in a freefall.
After tanking nearly 78% over the past year, Babylon shares are down a further 47% in the pre-market session at the time of publishing today.
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