Termination of Greencastle Capital Service agrmts

RNS Number : 4672N

Iconic Labs PLC

01 February 2021

 

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

Termination of Greencastle Capital Management Service Agreements

Iconic Labs Plc (LSE:ICON), a multidivisional new media and technology business announces that it has today received notices of termination of the management service agreements between the Company and Greencastle Capital in respect of the JOE Media and TheLondonEconomic businesses.

The notices from Greencastle Capital state as follows:

"Dear Katharine,

As you know we have kept the situation at Iconic Labs Plc ("Iconic") under careful review during the last few months.  While we are very pleased with the performance of Iconic, we take the view that the successful performance is principally the result of the skills and work of the senior management team of John Quinlan, Sam Asante and Liam Harrington.  With their resignation and likely replacement by a Cypriot hotel team we do not consider that it is acceptable for Greencastle Capital to risk its assets and own financial position by continuing the relationship with Iconic. Hence we have sent these notices of termination which are to take immediate effect.

We add that this outcome was not one that we foresaw and we regret it has happened and the needless destruction of value that has accompanied it.  We struggle to understand why Alpha Blue Ocean was not prepared to enter into a deal that seems to have been months in the making. We had hoped to build a longer, deeper relationship with Iconic, but clearly this can no longer happen.

We nevertheless wish you the best of luck going forward.

Kind regards,

Greencastle Capital"

The Company has received valid termination notices of the management service agreement in respect of TheLondonEconomic and the management service agreement in respect of JOE Media and Lovin' Media which have been terminated.  The Company notes that these management service agreements represent the most significant proportion of the Company's revenues to date.

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:

Iconic Labs [e-mail]

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