BlackBerry's tale of woes continued this week as it abandoned its sale process on Monday and announced that it will replace its chief executive and other top officials.

Fairfax Financial, which holds 10 percent stake in BlackBerry and is the company's largest shareholder, has refused to acquire the struggling smartphone maker and take it private. However, it said it will invest $1 billion as part of a revised investment proposal, together with other investors.

BlackBerry CEO Thorsten Heins, who took over the post in early 2012 after the company saw its marketshare slide, has stepped down. 

A few months back, in September, the company had announced that Fairfax Financial Holdings Ltd had agreed to buy the BlackBerry for $4.7 billion or $9 per share. The agreement was also to take the company private.

Fairfax also said that it would not increase its 10 percent stake in BlackBerry to make it easier for the company to attract other investors. It said it will attempt to raise about $1 billion by selling the convertible notes in a bid to help minimize the company's dwindling cash position.

"They never had any money beyond the Fairfax money," BGC analyst Colin Gillis said. "It's an under $5 billion market cap company with $2 billion in cash, you put up a $1 billion and you couldn't get the rest?"

John Chen, who also served as chairman and chief executive of enterprise technology firm Sybase, has replaced Heins as interim CEO.

For the time being, Fairfax chief executive Prem Watsa will be appointed lead director. He will also chair the company's compensation committee.

"Today's announcement represents a significant vote of confidence in BlackBerry and its future by this group of preeminent, long-term investors," said BlackBerry board chairperson Barbara Stymiest. "This financing provides an immediate cash injection on terms favorable to BlackBerry, enhancing our substantial cash position."