Increase and Change to Management Agreements

RNS Number : 7434H

Iconic Labs PLC

07 December 2020

 

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

Increase in Management Services Fee to £125,000 a month and change to the Management Services Agreements

Iconic Labs Plc (LSE:ICON), a multidivisional new media and technology business, today announces that it has agreed with Greencastle Acquisition Limited ("Greencastle Capital") (which is the holding company of the JOE and HER Media and Lovin Media businesses) to change the basis on which the management services that are currently provided in respect of the JOE and HER and Lovin' Media businesses are provided going forwards.

The original management services contracts ("MSCs") were intended to be separate contracts and with a monthly fee of £100,000 for managing the JOE and HER Media businesses and a monthly fee of £10,000 for managing the Lovin' Media business. However, as these businesses are now being run together, Greencastle Capital has agreed to consolidate the management services that are currently being provided by the Company under separate MSCs into one combined single MSC for all of these management services. Consequently, the existing individual MSCs have been terminated and a new single combined MSC has been entered into. In addition, Greencastle Capital has agreed to increase the aggregate management fee to £125,000 per month, with all other terms remaining the same and, as part of the negotiations, and also to reflect the previously announced strategic partnership between Greencastle Capital and Premier Media Broadcasting Limited, the right to convert the £1 million term loan previously entered into between the Company and Greencastle MM LLP (of which Greencastle Capital is the 98% member) into equity in Greencastle MM LLP has been removed.  Otherwise, the key provisions of the term loan remain the same which includes Greencastle MM LLP having the right to pre-pay the outstanding balance of the term loan in whole or in part at any time and otherwise the full amount of any outstanding amounts being payable at the end of its two year term, commencing from the date the loan was initially drawn down.

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]

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

 

END

 

 

MSCEANAXEEFEFEA