REG - Iconic Labs PLC - Corporate Update

Iconic LabsAnnouncement

06/01/2023 08:15

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RNS Number : 9341L  Iconic Labs PLC  06 January 2023

Iconic Labs PLC

 

("Iconic" or the "Company")

 

Corporate Update

 

 

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

 

The Iconic Board is mindful that the recently published accounts of the
Company for the years ended 30 June 2021 and 30 June 2022 (the "Accounts")
contain a lot of information to digest, particularly because it was not
possible for the Company to communicate with the market for several months
while the administration was pending.

As such, the Board wishes to make certain points clear:

·    The administration has now completed, and control of the Company has
been returned to the Board.

 

·    Iconic and its advisers are in active ongoing dialogue with the
Financial Conduct Authority ("FCA") to lift the suspension of the listing of
its shares (the "Suspension") as soon as possible.

 

·    All disputes involving the Company, the former management of the
Company, and European High Growth Opportunities Securitization Fund ("EHGOSF")
have been resolved.

 

·    Iconic signed a £3,000,000 financing facility with EHGOSF to pay for
the Company's short term operational needs and the Company Voluntary
Arrangement ("CVA") requirements. After drawing down 3 tranches under this
facility, as noted in the Accounts, the Company cannot draw down any more
funds until the Suspension is lifted.

 

·    The key provisions under the CVA are as follows:

 

o  Administration fees and preferential and critical creditors are being paid
under a payment plan that will end in April or May of this year if the Company
can continue to access the funds under the EHGOSF financing facility.

 

o  Unsecured creditors agreed to a 75% discount in their claims against the
Company (a reduction from approximately £1,070,000 to £267,000) to be
satisfied through the issue of 1,674,130,609 new ordinary shares in the
Company, if the CVA payment obligations referenced above can be met.

 

o  Secured creditor claims brought against Iconic of roughly £4,200,000 were
reduced to £750,000 to be satisfied through the issue of convertible notes.

 

o  EHGOSF reduced its claims against Iconic of £3,000,000 down to £750,000
to be satisfied through the issue of convertible notes.

Now that the Company has been successfully restructured, it is in a much
better position than it was when the listing was suspended in June of 2021.

The Company will keep the market informed as matters progress regarding
lifting the Suspension and any corporate developments.

 

ENQUIRIES:

ir@iconiclabs.co.uk

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

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