By Elena Vardon
Fiinu said its Chief Executive Officer Chris Sweeney will be stepping down as part of its headcount reduction effort to preserve cash as it executes its cost reduction plan and continues to seek funding to restart its banking-license application.
The U.K. fintech company on Friday said that so far none of its discussions with potential investors have been sufficiently advanced to secure the exit capital its subsidiary Fiinu 2 needs to reapply for its banking license. The reapplication process costs between 35 million pounds and 42 million pounds ($42.7 million-$51.3 million), it added.
“It is disappointing that we have been unable to secure the required funding to enable the company to launch into the marketplace,” Sweeney said.
Fiinu had around GBP1.9 million in cash as at Sept. 28, which it says is enough for the group to scale back its current operations in Fiinu 2 Limited and Fiinu Holdings Limited in line with the plan it laid out in July and to continue to meet its financial obligations.
The London-listed group said Sweeney, as well as three other board members, will leave the company on Dec. 31 to reduce future operating costs if there are no new potential funding developments by then. All agreed to remain as unpaid board advisers, it added.
Founder and Executive Director Marko Sjoblom will be appointed CEO over fund-raising period with deferred remuneration if the group succeeds with the reapplication process, it said.
Write to Elena Vardon at [email protected]
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