agree that Mark has done something... its a high premium they are paying for AHD (25% growth in volume for a 50% increase in our market cap) and the KMP of that business have the ability to sell out their holding in MCL within two years, plus if they are not retained (which is listed as a risk in the proposal) the brands will slowly turn to mud. lets not forget that seven seasons green ant gin is also Sacha's creation.
The other labels in the AHD stable are also retaining KMP as part of the sale - so we will again see wage costs balloon as these guys will get a pretty premium on their hard work to date... then a phat paycheck each week for turning up... no where able to match Marks pay... but without a doubt, it will be generous.
Existing beer labels were impacted by venue closures and capex expansion costs, spirits were profitable... wage growth was a large component of why cash burn and losses were occurring and that is all H.O and sales team - but YoY and QoQ growth were showing both of these concerns headed in the right direction. What this transaction has done has allowed Mark to clear his performance hurdles for the next two years without having to run the business profitably - its an equity contribution which will allow his targets to be hit... resulting in more expense.
I am for the move and will be oversubscribing for my issue of shares, but I have always had concerns about our CEO's remuneration...
MCL Price at posting:
37.5¢ Sentiment: Buy Disclosure: Held
