Iconic Labs Regulatory News (ICON)

For immediate release

Update on Administration and adjournment of General Meeting

The Joint Administrators provide the following update on progress since their appointment:

Update

1. The Joint Administrators have not made material progress in assessing the financial position of the Company as they await a Statement of Affairs which is required to be provided by the directors together with various accounting and financial records of the Company which have also been requested from the directors.

2. The Joint Administrators have, however, obtained access to a bank account of the Company which currently has a negative cash balance. The Joint Administrators are trying to establish whether the Company has any other bank accounts.

3. The Joint Administrators are not aware of any employees employed within the Company or any business activity being conducted by the Company, and therefore there appears to be no urgent operating cash pressure on the Company save for the costs being incurred in the administration.

4. The Joint Administrators have received unsolicited notices of claim from multiple unsecured creditors.

5. The Joint Administrators have received notice from the secured creditor of the Company suggesting that the obligations secured by its debenture extend beyond the debt originally claimed by it and cover a wider range of potential claims, including under the secured creditor's investment agreement with the Company. The secured creditor has further notified the Joint Administrators of several breaches of that investment agreement and that it is in the process of calculating the damages it claims are due as a result. The Joint Administrators consider that, should these claims prove to be correct, the sums due to the secured creditor are likely considerably to exceed the amount of the debt originally claimed by it.

6. The Joint Administrators act for the general body of creditors of the Company. They intend to instruct independent legal advisers to advise them on the merits of the various claims that have been asserted to date, including by the directors against a range of third parties. Upon receipt of that advice, the Joint Administrators will then consider whether such claims should be pursued for the benefit of the Company, its creditors and, potentially, its shareholders. Even if sufficient asset recoveries were to be made by the Joint Administrators towards discharging the claims of the secured creditor which are agreed in full, the Company would still remain in administration unless and until sufficient further recoveries can be made which would enable the Joint Administrators to pay all unsecured and other creditors and the costs of the administration in full. The Joint Administrators hope to be in a position to publish a summary of the legal advice being sought by them once received.

General Meeting

7. The Joint Administrators received representations from European High Growth Opportunities Fund ("EHGO") urging the Joint Administrators to proceed with the General Meeting originally scheduled for 2.00pm today, 15 June 2021. The Joint Administrators have agreed with EHGO that the General Meeting would be, and accordingly it has been, adjourned until 2.00pm on 29 June 2021 to enable the Joint Administrators to continue their investigations into the Company's affairs in the meantime and to update shareholders as necessary. The Joint Administrators hope to explore discussions with EHGO in relation to meaningful and achievable financing proposals to benefit the Company's creditors and, potentially, shareholders.

8. The Joint Administrators will provide further updates in due course.