(Alliance News) - Iconic Labs PLC on Thursday said it has taken a 24% shareholding in Medium Channel Media Ltd, a media focused investment company.
Medium Channel Media has been established by Starnavesse, a company controlled by Richard Thompson, one of the non-executive directors of Iconic Labs.
The media and technology company said it will also provide management and consultancy services and a loan for GBP150,000 to Medium Channel Media, be used solely for working capital purposes. The loan is repayable on demand by Iconic Labs and attracts interest at the rate of 5% per annum.
Simultaneously, Medium Channel Media has entered into a conditional agreement to acquire Tab Media Ltd, a youth and student culture focused publisher.
Under the terms of the management services agreement between Iconic Labs and Medium Channel Media, the senior management team of Iconic Labs will utilise their specialist experience to assist The Tab both to increase programmatic revenue by selling advertising space on The Tab's media platforms more efficiently, and increase revenue from creative services by improving The Tab's commercial presence and developing relationships with target brands.
Iconic Labs said it will secure fees payable by Medium Channel Media to the company on a monthly basis, and a minimum retainer revenue of no less than GBP25,000 a month.
The Tab reported revenue of GBP1.3 million in 2018, and it is confident that, with the addition of the Iconic Labs team, a "significant" increase in revenue and profitability is possible in the short term.
"We are constantly looking to build our platform and revenue streams to become a leading participant in the new media space," said Iconic Labs Chief Executive John Quinlan.
Iconic Labs shares were trading 6.6% lower on Thursday in London at 0.11 pence each.
Iconic Labs (ICON)