It has been a terrible year for Tyrone Wilson’s iCreate with a torrent of bad news and a constant changing of the guard.

Throughout it all Wilson has remained indefatigable, fighting on to keep the company he founded alive.

Some have pointed to iCreate as the poster child of why many of today’s young Jamaican entrepreneurs can’t cut it and don’t have a clue. Many seem unable to simply comply with what must be done by a viable company.

Nevertheless, young business owners need to be given time and opportunities to thrive. They must be guided by mentors and a strong board.

Ivan Carter is an experienced operator and was helping to navigate iCreate out of the choppy seas it found itself without a rudder. He was among those booted out and new directors installed.

Earlier this week, Sagicor Investments announced that it was sending in the receiver, Kenneth Tomlinson of Business Recovery Services Limited, as iCreate had technically defaulted on a J$24 million bond. The terms were for five years at an interest rate of 12.5 per cent.

So why would Sagicor draw for that card and open the trap door to the gallows, after all, it is just $J24 million?

It could have insisted on firm directives and made it clear that it expects iCreate to make good on what it owes. Furthermore it could have given the beleaguered company more time to come up with the required payments.

Our Today understands that iCreate was brokering an arrangement to pay down some of its obligation to Sagicor. It paid off all  the interest and requested a meeting to make a plan going forward.

That appears to have been summarily rejected.

Some companies need a helping hand and Sagicor could have offered one but chose not to.

Why?

Was it the case that it was perturbed by the constant bad news coming from iCreate particularly in reference to the Jamaica Stock Exchange?

Did the reliance on short-term financing to secure sizeable acquisitions such as Visual Vibe reflect naivety and deemed a recipe for disaster?

iCreate turned to Dolla Financial and Wilco Finance for a life line and together with its bond payments to Sagicor must have seen its interest costs on financing escalate. It has been revealed that financing costs for the third quarter 2023 rose to J$9.7 million compared to J$0.7 million for the same period in 2022. Wilson’s company leaned on short-term financing of J$38.3 million to help acquire Visual Vibe.

Wilson returned at the helm of the company he founded and immediately purged  the board and announced a new approach to how iCreate would now go forward.

Did this displease Sagicor? Was it the case that it had no faith in the management abilities of young Tyrone Wilson or could not rely on him to turn around the fortunes of iCreate.

We have seen several instances where young founders of companies get side-lined in Jamaica. Marcus James of Access and Kadeen Mairs of Dolla readily spring to mind. There is a case to be made for them to be assisted, mentored, allowed to bring their passion and chutzpah to well-functioning companies that can be placed on a growth trajectory.

It may be premature to discard many of them with the misapprehension that you can do better despite this business not being your core competence and you have no aptitude for this enterprise.

Sagicor may well think that Visual Vibe is a prized asset and can help with its marketing efforts. The insurer can now look to get it on the cheap but it is wading into unfamiliar waters?

Ted Turner founded CNN and sold it prematurely to Time Warner who later was acquired by AOL. He was side-lined from the company he founded and CNN has never quite been the same.

Steve Jobs the mercurial founded of Apple was kicked out of his company in 1985 and replaced by the President of Pepsi John Sculley. It was said that Jobs was too difficult to get along with and was far too demanding. On his return to the company in 1997, Apple soared to new heights as a world leader in its field under the guidance of Jobs’ genius.

More recently Sam Altman the founder of Open AI and the man who gave the world Chat GPT was fired from his company because “he was not consistently  candid in his communications with the board of directors.”

Those who found and build their companies sometimes leave unappreciated, kicked out by corporate raiders or just  plain get shafted.

This letter below must have been a dagger in Tyrone Wilson’s heart after his recent triumphant return to iCreate:

Dear Mr Wilson:

Re: Notice of Appointment of Receiver – iCreate Limited

This serves to advise that ,I Kenneth Tomlinson, was appointed Receiver and Manager by Sagicor Investments Jamaica Limited pursuant to Section 22.1 of Debenture dated February 6, 2020.

As a result of this appointment, full and exclusive powers of management and control of the company is vested in the Receiver/Manager.

Kindly provide us forthwith, the following information and documents as outlined below:

1. All books and records of iCreate Limited
2. Name and address of the Company’s Attorneys
3. Name and address of the Company’s auditors and accountants
4. Last audited financial statements/last Management Accounts
5. Names and addresses of all creditors
6. Cash balances at offices or elsewhere
7. Details of all bank accounts including: Name and address of bankers, Account number(s), Name of Account, Approximate balance(s)
8. Book debts (aged fi possible) and other receivables
9. Licences, patents, royalty or agency agreements granted to, or by, other parties.
10. Investment, grants or other government grants received or to be received.
11. Freehold and leasehold land and buildings together with copies of the latest available valuations.
12. Listed securities
13. Investments in other companies, including subsidiaries
14. Any other assets
15. Particulars of all items which are on the company’s premises but which are not the property of the company including goods supplied under reservation and title.
16. Assets not on the company’s premises, owned by the company.
17. Preferential creditors (estimated if necessary).
18. The current tax position.
19. Details of pending litigation.

Your prompt response and co-operation in this matter will be appreciated and we are requesting that we meet, as soon as possible, to discuss the above requests.

Yours truly,

Kenneth Tomlinson

Chief Executive Officer Receiver/Manager – iCreate Limited

Sagicor was not prepared to give Wilson time and it is a salutary lesson here for all young entrepreneurs. You must ensure the company you started is on sound footing so that it doesn’t fall prey to bigger fish. When they have you by the short and curlies, they always squeeze.

Wilson recognised that iCreate needed revenue streams that could quickly generate cash. He turned to e-commerce and outdoor advertising. Not a bad move but these businesses take time to make returns.

Tyrone Wilson has demonstrated an uncanny ability to find funding for working capital, sourcing money from Anthony Dunn among others.

A look at iCreate’s recent financials doesn’t give the impression that it would remain forever in the abyss. All that was need was the right clean-up team.

iCreate ended the nine-month period with a loss attributable to shareholders of $150.5 million from revenues of $78.6 million. For the period under review the Group had total assets of $700 million with total liabilities of $374.5 million. Shareholders’ equity fell to $307 million.

The digital media company looking to other revenue streams, recorded consolidated revenue of $34.8 million in Q3, 2023, which is 31.8 per cent above the corresponding period in 2022 of $26.4 million and ahead of the previous quarterly results in 2023. The increase is attributable to revenue generated by Visual Vibe  following the consolidation of its first full quarterly results since acquisition.

Year-to-date Visual Vibe has contributed 48 per cent of the Group’s revenues.

Consolidated 2023 year-to-date revenue stands at  $78.4 million, while full year revenue for 2022, after audit adjustments was $79.6 million.

Our Today’s Mark Kappart speaking from J.P. Morgan’s offices in Manhattan said:“It’s scary to consider that Sagicor can scoop up iCreate for around US$154,000.00 It could be the case that Zacca and the team at Sagicor became skittish hearing about stock price manipulation, reporting false company news, inaccurate and misleading financial reporting, a revolving door of executives and board members and felt something had to be done. It didn’t help that in August, the JSE suspended trading of iCreate shares.

“Wilson has vigorously denied the numerous allegations levelled at iCreate and has said that people are out to discredit him and the company’s business practices. That didn’t seem to appease Sagicor. The question is what now? Can Tyrone Wilson get out of the chokehold Sagicor has him in?”