(Alliance News) - Iconic Labs PLC on Wednesday responded to shareholder queries and said its GBP1 million contract with a UK financial services business "will be concluded in the near term" and it is closing down Student Media Ventures.
Shares in Iconic Labs were down 11% at 0.10 pence in London in morning trading.
The media and technology firm, formerly known as Widecells Group PLC, compiled a Q&A to address shareholder concerns. It said it is "finalising the exact payment details" of the contract, announced in early June, and "has already started to initiate the plan in anticipation of its finalisation".
Iconic Labs said its management share shareholder frustration over the length of time the contract has taken so far and are aiming "to get it signed as soon as possible".
The firm also said it is ended Student Media Ventures, which it created as a possible vehicle for joint ventures within the media industry. "The board has decided that is no longer needed and it is in the process of being closed down," said Iconic Labs.
The company also confirmed it is generating revenue, though did not provide any figures. Iconic Labs said it will report its revenue when publishing its interim results, due within three months of its half-year end on September 30.
Iconic Labs confirmed it has identified all of its legacy issues stemming from stem cell business Widecells "and budgeted for any payments due". As such, it now has more time for its strategy and for business generation.
Shareholders have asked after the cash and equity price for Iconic Labs' acquisition of Social Alchemist Ltd. Iconic Labs said this figure "was undisclosed for commercial sensitivities" but is synergistic and the buy could potentially "be value accretive for the wider group".
With regards to its remuneration policy and the purchase of shares by board members, Iconic Labs said its board currently operates "on low remuneration" but its "team will be remunerated going forward on the success of the business".
Iconic Labs also clarified its intention to draw down all remaining tranches of its GBP1.4 million financing agreement with the European High Growth Opportunities Securitization fund to pay off legacy debts, as well as for small acquisitions and working capital.
The firm also responded to the question of whether its GBP150,000 loan to Medium Channel Media Ltd to finance the Tab Media Ltd acquisition acquisition came from the EHGOS fund. Iconic Labs said the GBP150,000 "was budgeted within the last fundraising round as money that could be deployed by the company on strategic partnerships".
By Anna Farley; annafarley@alliancenews.com
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Iconic Labs (ICON)