Blackberry is no longer planning to sell itself to for $4.7 biilion to its biggest shareholder, Fairfax Financial Holdings.
Instead, the struggling smartphones giant is hoping to secure $1billion in financing.
Thorsten Heins will step down as CEO and former Sybase chief executive John Chen will serve as interim chief executive.
Last month, Blackberry reported a second-quarter net loss of $965m.
The plan, announced last month, is no longer taking off. Last week, Reuters reported that Fairfax was struggling to raise the financing needed for the deal.
"This financing provides an immediate cash injection on terms favourable to Blackberry, enhancing our substantial cash position," said Barbara Stymiest, chair of Blackberry's board of directors.
In September, the company announced a plan to cut 4,500 jobs, or 40% of its workforce, due to its inability to stay afloat otherwise.
