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(Alliance News) - Iconic Labs PLC on Monday said it plans to branch out into drone technology through a deal with Ott Ventures SRO.
As part of the deal, London-based media and technology firm Iconic has agreed with Ott to buy a controlling stake in drone-specialist Sting Industries Ltd.
Sting's drones are used in a wide range of applications for the military and security sectors including providing close protection by flying in front of users in tight indoor spaces.
Shares in Iconic were up 25% at 0.0145 pence each in London on Monday morning.
"I have worked with Ott Ventures and the affiliated companies in Group Ott for many years and am delighted to have been able to sign this letter of intent with them as I begin the process of building a bold future for Iconic," said Iconic's Chief Executive Brad Taylor.
"Sting is an exceptional company. I look forward to signing a financing facility with European High Growth Opportunities Securitization Fund and completing this transaction."
Under the deal's terms, Iconic would acquire a controlling stake of Sting for a combination of convertible notes, warrants and cash, and provide a "long-term financing facility to meet Sting's working capital needs".
The agreement is subject to due diligence and the finalising of a long-term financing facility of up to GBP50 million with European High Growth Opportunities Securitisation Fund, Iconic said.
By Will Paige; willpaige@alliancenews.com
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