Alceon, which is a private investment firm, could end up with a majority stake in Mosaic after agreeing to take on a $22 million loan.
Alceon Group, which acquired a 42 per cent stake in Mosaic in 2002, has agreed to take up its 36 per cent entitlement in the offer.
The owners of Spotlight Group have agreed to acquire a portion of the company’s convertible notes for $10 million. The deal, which was arranged by the company’s former CEO, Zac Fried and Morry Fraid, will provide the struggling retailer with much needed cash.
Alceon Group has announced that it plans to pass its investment trusts’ entitlements through to their underlying investors.
With the conversion of the notes, the investment trusts would have a combined voting power of over 63 per cent in Mosaic.
The company, which is currently experiencing a resurgence of panic due to the lockdowns, has raised $26 million in convertible notes. It will use the funds to reopen its stores and restock.
Mosaic must not increase its debt beyond its current limit. It also must not borrow more than $75 million under new debt covenants.
Mosaic, which owns the rights to several famous names in the arts, said it had received a new capital facility that would provide it with sufficient capital to trade for the long term.
Mosaic has received approval from Australia and New Zealand Bank to delay a $10 million stepdown of its loan facility and to renegotiate its covenant package.
Mosaic has again delayed its acquisition of EziBuy from Alceon until June 2022, and it will pay $3.7 million in 2021.
The Mosaic Company returned to profitability in 2021, after taking in almost $94 million from the JobKeeper payments. The company also slashed costs by closing 275 stores.
Mosaic products are available at The Iconic online. When you use a The Iconic coupon or The Iconic voucher, you will save when you shop there.