(Bloomberg) -- Sensyne Health Plc shares plummeted as investors in the company founded by a former U.K. government minister were set to be wiped out by a deal with lenders aimed at preventing its collapse.

Shares of the Oxford, England-based artificial intelligence firm dropped as much as 89% after it announced a “highly dilutive” convertible note pact that secures it 15 million pounds ($19.6 million). The stock will be delisted from London’s AIM market as a result, the company said, adding that without the fresh funds it would be unlikely to continue trading beyond this month.

Founder and Chief Executive Officer Paul Drayson, a member of the U.K. House of Lords and former Minister of Science under the last Labour government, has resigned, the company said. Drayson and his wife Elspeth together own about 24% of the company, according to data compiled by Bloomberg.

Worth more than 285 million pounds a year ago, Sensyne’s plunge on Friday saw its market capitalization drop to just 5 million pounds. The loss-making firm, which says its Sensight product offers access to real-world data on millions of patients, has warned investors of increased competition.

Lord Drayson will be replaced as CEO by Alex Snow, former chairman at U.S.-listed Exscientia Plc, Sensyne said. The shares were down 69% to 3.05 pence as of 12:15 p.m. in London. 

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