Dear Chairman,

I am disappointed in Cint Group AB’s current management. While you’ve taken the reins from an apathetic Chairman, you’ve now been burdened by a milquetoast CEO; whom I believe is more concerned with his own self interests than his fiduciary duties.

Perfection is the campsite for those who stop halfway.

The holistic view is very simple: Patrick Comer & Brett Schnittlich made very large claims to justify the acquisition of Lucid; and in my opinion¹, knowingly withheld material information, ultimately resulting in poor stock performance.

Patrick converted Cint’s credit facilities into his own riches, thus harming Cint’s credit ratings in the process. Ultimately extracting value from shareholders, including, but not limited to Fjärde AP-fonden National Pension Fund, whose purpose is to protect the financial security of Swedish pensioners.

I call for an immediate replacement of Cint’s CEO and COO.

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Upon the announcement of Cint’s new Strategy Update on Monday January 27th, 2025, I believe Patrick lacks an actionable plan to create shareholder value. I will expand on those issues by providing deeper analysis and commentary over the coming months in a more suitable format.

In the meantime, I call for a freeze of any future hiring, and an extensive conflict review by Bregje Meuwissen of current personnel. Through social media and industry discussions, Patrick is promoting a guise, that in order for Cint to grow, he needs to bring the band back together. 

Within 20 days of Patrick’s tenure, Brett Schnittlich was recruited as COO. Brett led Lucid’s sale as an advisor at Guidepost Growth Equity. Within 98 days, he brought in the obsequious Katy Mallios as a SVP whose been on payroll for over a decade. Within 141 days, Ben Hogg², as Managing Director of the Cint Exchange.

While all skilled and competent employees in their own right, they’re personal friends and Patrick loyalists with a deep history. This is not a band getting back together, this is a barrier of defense for a timid CEO that knows he is losing power and influence.

The Strategy Update even included a reference to “make-or-buy”, which is likely a signal to other pivotal Lucid members that their venture could be acquihired.

I suspect Patrick is using these people, whether against you or Peder Prahl, as protection from his termination. His argument will be a sunk cost fallacy: remove me, and you’ll need to replace all management positions.

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On Monday January 27th, 2025 Cint also announced an Extraordinary General Meeting to approve a rights issue of 600,000,000 SEK (approximately $54,000,000 USD) which represents a shareholder dilution event approximately 33% of market capitalization of the company.

While I can’t read the details as a United States resident, a summary describes this as an initiative to resolve matters of a $120,000,000 USD credit facility. There is a certain irony entrusting a CEO to resolve the repercussions of his own liquidity event, without a legal or financial incentive for him to do so.

Beyond that, Elizabeth Brooks was an early Lucid investor, with a $1,020,001 USD investment in 2015. Outside of Lucid’s boardroom, her husband is Brett Schnittlich.

You’re now situated with two prominent employees that are individual beneficiaries from Cint’s goodwill impairments. While I don’t know Brooks’s equity percentage upon the cash purchase windfall, her venture fund was incorporated just 5 days after Cint announced it would buy Lucid³. You have a management team composed of highly liquid and opportunistic individuals, that are inexperienced leading a public company.

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According to my napkin math, Triton Partners can come out of this rights issue with upwards of 48% ownership. Between this week’s 22% share price drop, and the rights issue discount, private equity is effectively buying up the company for a massive discount.

It’s possible Patrick uses this rights issue to maintain his current holdings adjusted for dilution. However, if he uses this opportunity to purchase additional shares beyond the adjusted allocation, he is effectively taking advantage of shareholders. I have previously called on Patrick to raise his equity position as a means to demonstrate his commitment to Cint, I would not constitute this method as an ethical approach.

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Indecision is the thief of opportunity.

I see a few options forward. Patrick & Brett can facilitate the private sale of Cint Group AB to the relevant and interested private equity firm(s) already buying up the company, effective immediately. While most shareholders will be getting out at a loss, they’ll at least be able to exit at today’s fair market value.

Another option: Patrick & Brett can resign, effective immediately. The EGM rights issue vote can proceed, and the company can use proceeds to amortize debt, strengthen the Cint Exchange by ensuring stable supplier payments, and rebuild trust with shareholders.

Additionally, Patrick & Brett stay, the EGM rights issue vote is abandoned, and alternative funding is secured. As an example, the simple loan agreement below will alleviate interest payments, prevent a rights issue from the dilution of existing shares, and generally provide flexibility to execute Cint’s 2.0 three year plan and grow the profitable Media Measurement product.

With peace and love,