Saturday, February 8, 2025
HomeBio-on-trial: 1.3 billion crashes including fraud and irregularities

Bio-on-trial: 1.3 billion crashes including fraud and irregularities

The trial is ongoing. crac di Bio-OnA bioplastics company that went bankrupt in 2019 has officially launched. Bologna. The investigation launched after the hedge fund attack Quintessential Capital Management (QCM), nine persons, including the former president, were indicted. Marco Estuary and his deputy Guido Cecognani. Defendants, in various capacities, respond. Fake bankruptcy and transfer of funds. An investigation carried out in collaboration with the Bologna Prosecutor’s Office revealed a series of accounting and management irregularities that led to the collapse of one of the most promising startups on the Italian scene. Let’s try to reconstruct the rise and fall of the “bio-on dream.”

The Birth and Rise of BioOn: A Bioplastic Dream

Established by Marco Estuary e Guido CecognaniBio-On promises to revolutionize the plastics world with PHA (polyhydroxyalkanoate), a biodegradable polymer discovered in 1926 by French chemist Maurice Lemoigne. The production process involved bacteria feeding on food waste, producing a substance capable of transforming itself. Plastic Fully biodegradable.

Bio-On, since its inception, had an ambitious mission: to solve the non-biodegradable plastic crisis and offer a sustainable solution to companies around the world. In 2011, appeared on the cover of Bio-On. Wired Italy, Consolidating our reputation as one of the most innovative startups in the world Bioplastic sector. His major projects included collaboration. Ikea, Cartel, Unilever And other world famous brands.

In 2014, Bio-On was listed on the AIM segment of the Italian stock exchange, which is reserved for small and medium-sized businesses. Thanks to its commitment to sustainable growth and innovation, the company’s investment skyrocketed More than 1.3 billion euros. At its peak, in 2018, Bio-On turned into a “unicorn”, i.e. a start-up with a valuation of more than one billion euros, a rarity in the Italian industrial scene.

Collapse: The Quintessential Attack

On July 24, 2019, everything was destroyed. Gabriel Grigofounder of the hedge fund Quintessential Capital Managementposted a video titled “A Parmalat in Bologna?”. In the video, Griego makes serious accusations against Bio-On, claiming that the company has built nothing tangible, that it has no relevant cash flow and that its business model is a speculative bubble. . The company, once accused of only licensing and selling designs without producing tangible products, was compared to Permalt case.

Bio-on stock fell dramatically in the stock market, losing more than 70% of its value in the same day. The collapse is estimated to have evaporated around 700 million euros of market capitalization. This event marked the end of the bio-on, which saw its value decline further in the following months, until Declaration of bankruptcy In December of the same year.

Gabriel Grigowho had placed a bearish bet on Bio-On stock, defended his short-selling operation, saying it was justified and necessary to expose market distortions. Griego said that was based on his report. Because of the reason Independently performed by accountant Maurizio Salom, who certified Irregularities in the budget di bio on.

Everyone in Court: Charges Against the Administration

process for crac di Bio-On It started in 2024. During the hearings, Marco Astori and Gabriel Griego met in person for the first time. Grigo, a key witness in the trial, reiterated that BioOn’s elimination was a “result of mismanagement” and defended his role as a shortlist. Bio-On’s defense argued instead that the so-called “quintessential operation” was intended to destroy the company, casting doubt on the impartiality of the due diligence being conducted.

Meanwhile, the accountant Hello Maurizioinvolved in the case as an independent auditor, confirmed that he had received a fee of 30,000 euros for his opinion and denied allegations of a conflict of interest. Salom has previously been a member of the Board of Auditors. NovamontA company active in the green plastics sector, however, defended its position saying there was no link between the two incidents.

Former leaders of Bio-On, including Astorri and Cicognani, are accused. Fraudulent financial statements and diverting funds to maintain the image of a successful company, while in reality debt continued to mount. The indictment alleged that BioOn had become an “empty box,” with no real prospects for growth or large-scale industrial production.

To open the indictment in the case, Deputy Prosecutor Francisco Calica used a similar metaphor, creating a picture:

An image of an old monument came to mind. In Campania very beautiful jars were put on sale with the Bay of Naples label. They were Cans of Naples But, apart from the aesthetic value, there was nothing inside.

The future of bio-on: towards acquisition by MAP

Despite BioOn’s bankruptcy, the company’s story is far from over. In March 2023, the Piedmontese company Turnipspecializing in biopolymers, has acquired for Bio-On. 20 million eurosCastel San Pietro took over the factory, brand and about 140 company patents. Maip has announced its intention to restart production of bioplastics by building a new plant next to the existing plant.

A twist Around There is a disturbing involvement in the story. Marco Estuary In the resumption of the company. Despite the ongoing process, Astorri was asked by Maip to contribute due to his experience and expertise in the field. Eligio Martini.Maip’s founder declared that Astorri’s support would be fundamental to the success of the new Bio-On.

A Lesson for Fraudulent Investors: How to Protect Yourself

Bio-On’s collapse not only overwhelmed large investment funds, but also affected hundreds of small investors who had invested in the company, attracted by its promises of innovation and sustainability. Prominent investors include famous people. Fabio Roversi MonacoFormer Rector of the University of Bologna and Alberto VicchiPresident of There isa multinational packaging company. Vichy had invested millions in one. A joint venture with BioOn, but saw his investment liquidate as the stock fell.

Numerous lawsuits have been filed by defrauded investors, many of whom hope to recover at least some of their losses. The legal proceedings also focus on the responsibilities of supervisory authorities, such as Consob and Borsa Italiana, accused of not having intervened to halt trading in Bio-On stock before it was too late.

However, the Bio-On case represents a lesson for investors. Despite the excitement about innovative and promising startups, it is important to do due diligence before investing in unestablished companies. Investing in emerging sectors such as bioplastics can offer great opportunities, but it also comes with a downside. High risks.

Diversifying your portfolio, carefully monitoring the balance sheet, and relying on independent sources to assess a company’s financial strength are some of the strategies investors can use to protect themselves from similar situations. Should be adopted. The collapse of Bio-On showed how dangerous it is to base your investment decisions. The promise of the future Not supported by solid foundations.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments