BICO Group’s Founders Exit. What’s Next?

Few investment options attract more newbie investors than technology stocks. Exciting stories abound, and the volatility of this “asset class” reflects the constantly changing forecasts of future growth potential. (Value stocks, on the other hand, are less volatile because most of the potential is being realized in the present.) Institutional investors are not immune to these attractions, and that became apparent when BICO Group (BICO ST) first had their IPO under the name CELLINK back in 2016 which was more than 1,070% over-subscribed. Today, the three founders who created this 3D bioprinting darling have all exited leaving investors wondering what the future looks like for this $270 million company.

No More Founders

“Without them, the company would not have existed,” said the Chairman of the Board when announcing that the company’s two remaining founders were shown the door. Understatement of the year. The third founder, who occupied the role of CFO, was cut loose from the company several years ago which leaves investors wondering what the meaning of all this is. Why would three founders allow themselves to be kicked out of their own company?

At least in two cases, the answer probably lies in the press release announcing their departure and the below chart.

Erik Gatenholm is the company’s largest shareholder and was the CEO up until November when he was replaced. Given his large ownershi