TIDMICON
RNS Number : 2096P
Iconic Labs PLC
09 October 2019
9 October 2019
Iconic Labs Plc ("Iconic Labs" or the "Company")
Q&A Document
Iconic Labs (LSE:ICON), a multi-divisional new media and
technology business, would like to clarify several queries from
shareholders with regard to its strategy and operational matters;
accordingly, it has compiled the following Q&A.
Has any revenue been generated?
The Company is generating revenue and the extent of this will be
reported in accordance with the statutory financial calendar. The
Company's next results will be the interim results, which are due
within three months of the September 30(th) period end. Additional
information around revenues may be reported as part of operational
updates and on an ad hoc basis at the Company's discretion.
What is the status of the GBP1 million contract?
The Board is finalising the exact payment details and is
confident this will be concluded in the near term; the team has
already started to initiate the plan in anticipation of its
finalisation. Although finalising a contract of this size can
typically take considerable time, the management share the
frustration with Shareholders about the length of time this has
taken and will continue to use their best endeavours to get it
signed as soon as possible.
Are legacy issues sorted? Is that phase complete?
The Board believes it has identified all legacy issue and
budgeted for any payments due. Accordingly, the team is now able to
free up more time to implement the strategy and focus on business
generation.
What was the cash and equity price of the Social Alchemist
acquisition?
As stated in the announcement to the market, the consideration
was undisclosed for commercial sensitivities, but the Board believe
it to be synergistic and has the potential to be value accretive
for the wider group.
When are Board members going to buy shares in the Company and
has the renumeration been settled?
The Board is operating on low renumeration and devoting its time
to executing the Company's development strategy for the benefit of
all stakeholders. The team will be remunerated going forward on the
success of the business.
Can you clarify what tranches of the Financing Agreement you
have taken (as announced in RNS of August) and do you envisage
taking the remaining tranches? If so, what will this money pay
for?
The Company announced the draw down agreement on 6 August. The
Board anticipates drawing down on the remaining tranches to use for
legacy debts, working capital and small acquisitions. As previously
announced, some of this cash has been budgeted to pay for legacy
debts incurred by the previous Widecells stem cell business. The
working capital element enables the Company to execute its strategy
on an ongoing basis. Additionally, it will allow Iconic Labs to
execute synergistic acquisitions, like the previously announced
GSN, which it will evaluate on a case by case basis.
Why was the 0.4p base price stated via RNS then ignored?
The floor price mechanism solely related to the historic
EHGO/Widecells facility. While it did provide a floor price at
which the convertible secured debentures were converted, it also
led to the issuance of bonus or penalty shares, the result of which
was that there was in effect an overall aggregate conversion price
lower than the floor price. The Company only agreed to the
mechanism due to and in respect of the inherited facility with EHGO
and therefore does not intend to agree to such mechanisms going
forward.
Would that GBP150k loan from Iconic Labs be from the EHGOS Fund
financing
150k was leant to MCM to provide working capital for the Tab
acquisition. The Company believes this transaction will provide
significant revenue on a monthly retained revenue basis and also
allow the Company to access a profit share which it believes will
far exceed 150k. The 150k was budgeted within the last fundraising
round as money that could be deployed by the Company on strategic
partnerships, like that with MCM.
Is EHGO still forward selling shares?
As far as the Company is aware, EHGO is not forward selling.
Can you confirm when the next AGM will be held?
The next AGM will be held once the final results are published
before 31 December 2019.
When is the official website launch?
The new website is being developed and this is targeted to be
launched within six weeks.
How many staff are working for you?
The Company currently has eight full time employees and is
looking to build this as the business grows. It also employs
contractors on a case by case basis to fulfil work specs and ensure
that the on-going cost based is managed sensibly.
What is the status with Student Media Ventures?
Student media ventures was created as a potential vehicle for
joint venture opportunities in the media industry. However, the
board has decided that is no longer needed and it is in the process
of being closed down.
What is the status with the publication of an updated
shareholder register?
The Company enlisted the help of its registrar to clarify the
identity of its shareholders. Although the registrar has contacted
all nominees shown to own more than 3% of the Company' shares, not
all nominees have responded to the registrar. This has meant that a
current shareholder registrar is not complete at this time. The
Company is working with the registrars and will update shareholders
in due course.
When will the Company give another update?
The Company is planning to give an update regarding GSN and
Social Alchemist in the near future.
**ENDS**
For further information, please visit the Company's website
www.iconiclabs.co.uk, email IR@iconiclabs.co.uk or contact:
John Quinlan Iconic Labs Plc c/o SBP Tel: +44 (0) 20
7236 1177
Damon Heath Shard Capital Partners Tel: +44 (0) 20 7186 9950
LLP
Erik Woolgar Shard Capital Partners Tel: +44 (0) 20 7186 9950
LLP
Juliet Earl St Brides Partners Tel: +44 (0) 20 7236 1177
Limited
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 rns@lseg.com or visit www.rns.com.
END
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