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Chrispye84, sorry to disagree but that isn't how I see it. The 237M shares are not for the tranche cash, but compensation for earlier purchases at 0.4p when the market price of the shares was lower.
The RNS of 6th August 2019 stated "In addition, the Company has also today agreed to settle with the Investor the remaining amounts due that were outstanding under the previous financing agreement entered into with the Investor, by entering into a deed of settlement ("Deed of Settlement"). This will involve the issue of Ordinary Shares to the Investor on the following basis:
· 237,827,207 Ordinary Shares are to be issued to the Investor on the sixth trading day following the entering into of the Deed of Settlement;"
The key words are " the remaining amounts due that were outstanding under the previous financing agreement". There are some more shares to come as ICON does not presently have authority to issue more, and their number and price will depend on the share price following a GM.
Then the RNS of 16th August confirmed that those 237M shares had been issued.
The Q&A of the same date confirmed that after the share issue EHGOSF was down to 5.79% as they had pre sold the shares - that was pretty obvious as volume had reached 500M in the days prior and the share price collapsed to in the region of its present 0.13p, and hasn't recovered since.
To issue the warrants and any remaining settlement shares the company will send a prospectus to the UKLA by 6th November and issue it to shareholders for a GM by 6th February 2020.
EHGOSF are locked in on their 70M until 17th October. They say they want to be a long term shareholder, but their track record suggests they bail almost as soon as they can.
Following the GM EHGOSF will get warrants attached to the £1.375M loan notes. Their price can't be determined as yet.
ICON has recently done three stonking deals and the result has been to cut the share price in half. I'm sure this is due to lack of clarity on the eventual number of shares to be issued.
I'm hoping that ICON will be able to refinance the EHGOSF deal in the relatively near term - I guess it all depends on how many £25K per month retainers they can acquire, so maybe the warrants will never be issued - here's hoping.
I think once there is clarity on the eventual number of shares actually in issue, post financing the shares will rise significantly.
LinkedIn still lists them as having only 7 employees, so I wouldn't have thought expenses are much north of £1M to £2M at present. If they can draw in £120K cash per month they could be at break even. They maybe half way to that now depending on how much of the £1M contract is in shares or cash.
We have a really strong team here. After a slow start they are showing what they can do. The MCM deal says it all - they put in their expertise and get 24% of a cash rich company worth possibly £10M-£20M - valuation based on a 2017 deal.
Here's hoping for a few more deals
John fitt. Yes been doing oil for a while now. Would have liked to offer him something but doesn’t suit where I am. Diff Phil Dove this one is alive and well in Essex
I'm somewhat surprised that the Iconic Labs/MCM/The Tab deal hasn't generated more interest generally.
In fact apart from a few very specialist publications it has generated almost no interest whatsoever.
Iconic Labs appear to have got their hands on 24% of The Tab in return for their expertise at £25K per month and a loan of £150K.
It says quite something about their expertise when they are able to pull off such a deal with what appears to be relative ease.
Iconic Labs director Richard Thompson is obviously the money man behind the deal. I speculated earlier that The Tab could well be worth £10-£20 million (possibly higher).
So how is that to be paid? Is Richard Thompson up to raising that amount of money?
I think so.
This is his mother and father taken from this years Sunday Times Rich List.
"174= DAVID AND PATRICIA THOMPSON
Food and Horseracing
£800m ?£70m
Thompson, 83, and his wife Patricia, 79, saved Cheveley Park Stud from bankruptcy more than 40 years ago and today Newmarket’s oldest breeding operation is in fine fettle. Former Smithfield market meat trader Thompson made his first fortune through the Hillsdown food group, selling half his stake for £145m in 1987 and the rest for a similar amount later. We see total assets in four separate family companies of £264.4m, up £67.6m in a year.
2018: £730m, 187="
So no problems with raising cash there.
And Richard Thompson of course has his own wealth and business interests with an estimated value in the tens of £ millions.
I suspect Social Alchemist was purchased for its platforms and the skills of Jono Yates ex LADBible (did he also fall out with them, or just decide to go alone; and what has Iconic offered to persuade him to go with them, rather than simply his own very successful operation?), GayTimesNews I think was simply opportunistic, but The Tab appears to take Iconic into a whole new world of opportunity including the United States.
This site
https://www.alexa.com/siteinfo/thetab.com
shows that 31% of traffic comes from the UK, 27% from the US and 16% from India. The Tab is effectively an international platform.
GayStarNews actually has an even bigger presence in the US with 43% of traffic coming from there, although the figures are now going all squiffy as the site hasn't been operational for 6 weeks.
So I suspect that Iconic Labs are building something of considerable size and reach here, much more than Unilad on steroids.
All this has been swamped, news wise, by the legacy issues and EHGOSF share funding, so most investors have effectively switched off, and the share price actually fell post deal.
But it will only be a matter of time before Iconic is recognised as having huge potential.
PS. The 237M shares were "compensation" shares for EHGOSF as they were buying at the .004p "floor" when the shares were lower. All sold long ago.
What are the 230 million shares for? 237,827,207 shares were quoted in the first Q&A but I thought they had them?
Chris Pye sorry didn’t see your post. So you know Dove & Fitt just assumed the 84 was birth year. Making you too young for the floor. I can’t get messages on here.
Come on Chrispye84 why will the loan be repaid in 6 months??? The £25k is management/consultant fee. So nothing to do with the loan. Thought you was inside. Still not want to discuss your time in the pit???
looking good
https://www.youtube.com/watch?v=OtmfZ3UBB60&feature=youtu.be
Wow 25k a month
Is that good or bad? Do you know where the other £180K went?
Either way they (Iconic) appear to be motoring now.
And another thing........
The last financing deal with EHGOSF for £1.375M provided for the following payments following the signing of the agreement which presumably took place on 6th August.
On signing £300K less £75K in fees = £225K
1 months after £275K
2 months after £250K
3 months after £175K
4 months after £175K
5 months after £175K
The puchase of SA presumably used up most (if not all) the first tranche - that is why it was £225K, and not any other amount.
The second tranche - not released until 6th September - was £275K.
Of this £33K was used to buy Nuuco Media from DS. Gay Times News Limited was placed into liquidation on 30th August 2019 following a Resolution on 15th August 2019. The liquidator was looking for a quick sale (maybe others were also interested) but Iconic whilst wanting to buy has no money and has to wait until Friday 6th August for the second tranche.
Nuuco Media (DS) stumps up £33K (obviously the liquidators fees and costs - standard practice) and then DS sells the company on Monday 9th August (the first day after they get the cash) to Iconic for the said £33K as they are now flush with the tranche of £275K from EHGOSF.
A few days later they lend MCM Ltd £150K to be used in purchasing Tab Media Ltd.
They now have £92K left of this months tranche.
By working out how much Iconic spends each month of acquisitions (and they do appear very acquisitive) it should be possible to estimate how much cash they are burning on a monthly basis.
An early use of the remaining £92K, or the majority of it, would suggest that cash burn was zero ie they are at break even already.
It is clear that they have spent the last month lining up acquisitions and, as soon as the money comes in can then complete the deals.
Maybe watch this space next week for use of the remaining £92K?
Further any GM to approve the issue of loan notes to EHGOSF will not take place until between 6th November 2019 and 6th February 2019. I suspect by then Iconic Labs will be a very different company rendering the EHGOSF financing redundant.
Further JQ mentioned in the recent ProActive interview one of the main reasons there had been no "formal launch" was due to lack of cash.
FWIW from my point of view spending the best part of £100K on "a bash to remember" wining and dining a load of executives (yes, I know this is PR) can wait, spending the money wisely on deals is what matters.
If they announce the "formal launch" in the next few days you know where the other £92K has just gone.
Keep doing the deals lads, they truly are stonkers.
Mmmmm......
MCM Ltd enters into a contract to buy the whole of Tab Media Ltd - we are not told how much for.
Contemporaneously Iconic Labs plc lend £150k @ 5%pa to MCM Ltd for "working capital", and gets a 25K per month management services deal together with profit sharing, and at the same time takes a 24% stake in MCM Ltd.
The "working capital" is presumably the anticipated cost of getting the deal through to completion.
But in 2017 Rupert Murdoch and others invested £4.6M in Tab Media Ltd for a minority stake (for argument lets say 49%) which would value the whole at £9.2M. The lower the actual stake the higher the value of course.
www.theguardian.com/media/2017/sep/07/taking-the-tab-news-site-founder-on-how-he-got-4m-from-rupert-murdoch
He also gets Emma Tucker deputy editor of The Times on the board - one of four directors, suggesting the minority stake is actually in the region of 25%, valuing Tab Media at around £18.4M.
Latest accounts show that the company was sitting on £1.3M cash at 31st December 2017. Debtors were £1.2M, creditors just £300K.
So unless the value of Tab Media Ltd has dropped precipitously in the last 18 months or so, unlikely (although not impossible) I'd say, it appears that Iconic Labs have just acquired a 24% stake in a company which 24 months ago was worth £10-£20 million. Today it could be worth quite a bit more.
How much actual value is there for Iconic from day one does of course depend on whether MCM Ltd will be loaded with debt in order to make the purchase, however initial details suggest that this is a truly fabulous deal. Debt of course can be paid back out of profits from Tab Media Ltd.
The lads at Iconic are leveraging their considerable and proven skills in order to build stakes in entities which have considerable value.
This deal alone is potentially worth many times the existing market capitalisation of Iconic Labs.
The company has been set up to buy tab as you well know. All - Angela is a serial and likely paid deramper. Never seen positive post on any stock. One way to make minimum wage. SL