The Amaysim Ltd (ASX: AYS) share price is now down around 73% in two years and down around 40% since the end of June 2018 when since its former CEO, Julian Origin, quit the business.
He was followed out the door not long later by Amaysim's chief financial officer, with two other board directors also retiring between November 2017 and 2018.
The virtual mobile network operator bought its Click Energy business in May 2017 for $120 million via a mixture of scrip issued worth around $40 million and $80 million of bank debt with the Commonwealth Bank of Australia (ASX: CBA).
In FY 2019 it posted a net loss of $7.4 million as it wrote down the value of its Click Energy acquisition by $15.7 million.
Moreover, just a month or so after the May 2017 completion of the Click Energy acquisition the CEO Julian Origin sold around $1.58 million worth of shares on market at price around $1.65. Followed by the dumping of 833,605 shares options in August 2017.
The final straw being the debt-fuelled acquisition party left shareholders ultimately picking up the bill with the company raising $50.6 million on a dilutory 1 for 2.5 basis at just 60 cents per share in March 2019.
What I'm getting at here is that there were plenty of red flags for Amaysim investors over the last two years; including the CEO selling and quitting after a large debt-fuelled acquisition, alongside four insiders leaving the business.
Generally, where investors see this kind of picture being painted at a small-cap 'growth' company then I'd run for the hills.
