Operations and Financing Update

RNS Number : 4253Z

Iconic Labs PLC

18 September 2020

 

Iconic Labs Plc ("Iconic Labs" or the "Company")

Operations and Financing Update

Iconic Labs Plc (LSE:ICON), a multidivisional new media and technology business, today provides the following update.

New JOE Media contract

The Company continues to work under the management services agreement with JOE Media, and is currently fulfilling a contract to manage the production and distribution of bespoke social content through JOE Media in the UK. Revenues from this new contract are approximately £100,000, the contract has already commenced and is scheduled to conclude in Q2 of 2021.

Going forward, the management services agreement will also extend to JOE Media's Irish operations   following the expected completion of the acquisition of the JOE Media business in  Ireland by Greencastle Capital.

Completion of JOE Media Ireland acquisition

The Company has been informed that completion of the acquisition of the JOE Media business in Ireland by Greencastle Capital has been delayed from the guidance previously given and is now expected to occur in early October.  The Company does not expect any further delay, and will take full operational control of JOE Media's Irish business immediately on completion of that acquisition.

Negotiations with European High Growth Opportunities Fund ("EHGOF")

As previously announced, the Company intends not to serve any further notices to draw down under the Financing and Settlement Agreement entered into by the Company and EHGOF, going forward.  Discussions with EHGOF about settling outstanding amounts due under the Financing and Settlement Agreement (see RNS dated 7 February 2020), and in respect for legacy debts are progressing well.  As previously announced, the Company intends to settle such amounts from organic funding from revenues together with conventional issuance of ordinary equity capital and non-convertible debt. The Company remains on course to meet its aim of completing the restructure of its financing in the fourth quarter of 2020 and will continue to provide updates.

In the interim, EHGOF remains free to convert the outstanding loan notes and/or exercise warrants already issued to EHGOF, although it can only do so within the limits of the level of authority that was granted to the Company at its general meeting held on 27 February 2020 and as fully set out in the prospectus dated 25 March 2020.  In summary, the Company was granted authority to issue new ordinary shares of £0.00001 each in the capital of the Company ("Ordinary Shares") up to an aggregate nominal amount of £300,000 as if the pre-emption rights contained in the Companies Act 2006 did not apply, which would enable a total limit of 30,000,000,000 new Ordinary Shares to be issued, with a limit on the number of new Ordinary Shares that can be issued on an exercise of the issuance warrants of 6,900,000,000 and a limit on the number of new Ordinary Shares that can be issued on a conversion of loan notes and warrants issued under the Financing and Settlement Agreement of 23,100,000,000.  Before any additional new Ordinary Shares over and above these amounts can be issued, the Company would require prior shareholder approval to be given and it is the intention of the Company to replace the Financing and Settlement Agreement rather than ask for such approvals.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

**ENDS**

For further information, please visit the Company's website www.iconiclabs.co.uk or contact:

Damon Heath

Shard Capital Partners LLP

Tel: [phone]

 Iconic Labs  [e-mail] 

 

END

 

 

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