Mosaic fined again, page-3

it’s a shadow of the company that Alan Kindl founded. Alceon made a private equity bid which was thwarted by minority shareholders (for good reason). The private equity play is to delist the company, strip out the cash, load the company with debt and add some bolt on assets before refloating at a premium.

Alceon couldn’t get the requisite 90% to compulsorily acquire the company. This forced them to remain listed. They followed the private equity playbook anyway and made acquisitions. Loaded with debt they were unable to raise IPO capital and had to survive under their own steam. Obstacles appeared. bushfires, Covid. These became excuses to hide the fact that the company wasn’t properly capitalised. What was supposed to be a quick turnaround has become a nightmare for Alceon.

It’s a sad tail but I don’t think in this market that the company has any more rabbits in the hat. I’ll be surprised if they pull through