Talkspace investor Firstime Ventures is asking the virtual behavioral health company to appoint a permanent CEO and publish a proactive strategic plan.
This occurs while Talkspace continues hard in the public market. The stock was valued at approximately $9 per share when it was made public through a $1.4 billion SPAC in 2021. It is now valued at around $1 a share.
The investment firm, which owns about 5% of the company, sent a letter to Talkspace asking for clarity on the company’s future plans, according to looking for alphawho first reported the story.
“Firstime is concerned about reports that have been brought to its attention about the effect that management may have refused to consider multiple approaches by various stakeholders in discussing the purchase of Talkspace,” Firstime’s legal team wrote in a letter. Talkspace interim CEO Doug Braunstein. .
Talkspace’s leadership team has gone through a number of changes over the past year. former company CEO and co-founder Oren Frank he resigned from the role almost a year ago after a poor financial situation in the third quarter of 2021. At that time, Roni Rank, co-founder and head of clinical services, also resigned.
Last November, the company’s chief operating officer hirschhorn brand resigned after “an internal review of Mr. Hirschhorn’s conduct in connection with an off-site company that took place late last week.”
The company continues to face economic headwinds. In the second quarter of 2022, the company’s revenue decreased 4% year over year to $29.8 million. While it saw growth in its business-to-business revenue, the increase did not offset its direct-to-consumer business losses.
In June, Seeking Alpha reported that Amwell (NYSE: AMWL) has offered Talkspace an acquisition agreement. According to the report, Talkspace rejected Amwell’s offer before finances were discussed.
That may not have been Talkspace’s first offering. In May, Axios reported that the operator of the mental health clinic Mental health had made a takeover bid, which did not materialize.
Behavioral Health Business has reached out to Talkspace and Firstime Ventures for this story, but has not received a response in time for publication.
