Alva-based Omega Diagnostics Group said on Wednesday that CEO Colin King notified the board that he will step down from his position with immediate effect.

Omega also announced that former chairman Bill Rhodes, a non-executive director, notified the board that he will also step down from his role at the end of February 2022.

Omega said it has appointed Jag Grewal as CEO with immediate effect.

“Jag has been a member of the Omega board since joining in June 2011 and is currently managing director of the health and nutrition division,” said Omega.

“He has over 25 years’ commercial experience and an extensive network in the fields of in vitro diagnostics, life science research and drug discovery.”

On December 10, Omega shares fell about 30% after it published a stock exchange statement about a legal fight with the UK Government’s Department of Health and Social Care (DHSC) over a £2.5 million repayment being demanded by the DHSC related to a contract for COVID-19 lateral flow antigen tests.

“The board of Omega, having taken initial legal advice, do not believe that the company is required to repay the pre-production payment and will respond in writing as requested … The board will continue to take further legal advice on this matter and hopes to reach a resolution swiftly,” said Omega on December 10.

Omega shares, which were trading around £1 in March 2021, have fallen to around 15p and the firm’s stock market value has slumped to around £28 million.

Omega said it will begin the process of seeking suitable non-executive director candidates.

The company added: “Further to recent speculation, Omega can confirm that it currently has cash balances in excess of £2.5m and an undrawn overdraft facility of £2.0m.

“Thus, there is no short term need to raise additional capital.

“Like all growth companies, Omega will look to raise funds to drive growth as and when appropriate.”

Omega chairman Simon Douglas said: “On behalf of the board I would like to thank Colin for his contribution to the business over the last six and a half years.

“Colin has been a valued leader of the Omega team and it is with considerable regret that he has decided to step down and I would like to wish him all the best in his future endeavours.

“I also offer my thanks to Bill for his support for the company during his tenure as chairman and latterly as non-executive director.

“I would also like to welcome Jag into this new role and we look forward to working together on the next phase of Omega’s exciting future.”