NAPA – Senetek PLC closed a security purchase agreement with DMRJ Group in New York along with a $3 million convertible note and a five-year warrant to purchase 1.8 million shares.
Assets related to Senetek’s skin-care business were sold to Skinvera, a company owned by Frank Massino. Mr. Massino left his position as chief executive officer and board chairman of Senetek, though he was retained as a part-time consultant for three years. William O’Kelly also left the company as chief financial officer, and Rodger Bogardus resigned from the board.
John Ryan was appointed to the CEO and board chairman role, and Howard Crosby was named president and appointed to the board. Wesley Holland was also appointed to the board.
Reports from Miller Tabak & Co. reviewing strategic options for the company stated the company’s current businesses are all underfunded intellectual property assets needing investment in excess of existing resources to generate meaningful revenue. Past success with intellectual property licensing is based on a business model out of favor with institutional investors, making it difficult to create a viable market for the company’s stock, according to the reports.