Trading Update

RNS Number : 7717E

Iconic Labs PLC

03 March 2020

 

3 March 2020

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

Trading update

Iconic Labs Plc (LSE:ICON) (the "Company"), a multi-divisional new media and technology business, is pleased to provide the following update.

Trading Update

The Company's business continues to show early signs of growth, with two contracts recently announced, and further potential opportunities under discussion being advanced.  The Company now generates revenues and expects growth of revenues to continue significantly.  The board has therefore set a target that the Company will aim to at least cover all general and administrative costs during the second half of 2020. 

In order to ensure that the Company is sufficiently funded in the interim, and is able to resolve the accrued net asset deficit of £2,380,000 as at 28 February 2020, the Company has submitted an advanced near final form prospectus to the Financial Conduct Authority for its approval prior to its publication, which is necessary under the Prospectus Regulation Rules, and which upon publication will enable the Company to draw down the  tranches under the previously announced Financing and Settlement Agreement. The majority of the shareholder deficit is the debt owed to European High Growth Opportunities Securitization Fund (EHGO) and further debts owed to professional advisors relating to 'one off' costs associated with dealing with legacy costs and the costs of the prospectus. The operational debts of the ICONIC business are less than £150,000 and include deferred salaries from the directors. The Company has fully budgeted for these amounts and still plans to draw down a total of £2m, the minimum possible under the new Financing and Settlement Agreement. When combined with increased revenues, this capital should enable the Company to meet its previously stated aim of resolving balance sheet concerns prior to the end of 2020.

**ENDS**

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

Damon Heath

Shard Capital Partners LLP

Tel: [phone]

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