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On 6 January 2023, Iconic Labs PLC announced the completion of its administration, with control returned to the Board, and the resolution of all disputes involving the Company, former management, and European High Growth Opportunities Securitization Fund (EHGOSF). The company secured a £3,000,000 financing facility with EHGOSF, from which three tranches have been drawn, and restructured creditor claims: unsecured claims reduced from approximately £1,070,000 to £267,000 for 1,674,130,609 new ordinary shares, while secured creditor claims of roughly £4,200,000 and EHGOSF claims of £3,000,000 were each reduced to £750,000 to be satisfied via convertible notes.
| Date | 6 Jan 2023 |
| Time | 08:10:33 |
| Category | Corporate updates |
| ID | 9341L |
Iconic Labs PLC
("Iconic" or the "Company")
Corporate Update
Iconic Labs PLC (LSE:ICON), a multi-divisional new media and technology business, is pleased to provide the following corporate update.
The Iconic Board is mindful that the recently published accounts of the Company for the years ended 30 June 2021 and 30 June 2022 (the "Accounts") contain a lot of information to digest, particularly because it was not possible for the Company to communicate with the market for several months while the administration was pending.
As such, the Board wishes to make certain points clear:
· The administration has now completed, and control of the Company has been returned to the Board.
· Iconic and its advisers are in active ongoing dialogue with the Financial Conduct Authority ("FCA") to lift the suspension of the listing of its shares (the "Suspension") as soon as possible.
· All disputes involving the Company, the former management of the Company, and European High Growth Opportunities Securitization Fund ("EHGOSF") have been resolved.
· Iconic signed a £3,000,000 financing facility with EHGOSF to pay for the Company's short term operational needs and the Company Voluntary Arrangement ("CVA") requirements. After drawing down 3 tranches under this facility, as noted in the Accounts, the Company cannot draw down any more funds until the Suspension is lifted.
· The key provisions under the CVA are as follows:
o Administration fees and preferential and critical creditors are being paid under a payment plan that will end in April or May of this year if the Company can continue to access the funds under the EHGOSF financing facility.
o Unsecured creditors agreed to a 75% discount in their claims against the Company (a reduction from approximately £1,070,000 to £267,000) to be satisfied through the issue of 1,674,130,609 new ordinary shares in the Company, if the CVA payment obligations referenced above can be met.
o Secured creditor claims brought against Iconic of roughly £4,200,000 were reduced to £750,000 to be satisfied through the issue of convertible notes.
o EHGOSF reduced its claims against Iconic of £3,000,000 down to £750,000 to be satisfied through the issue of convertible notes.
Now that the Company has been successfully restructured, it is in a much better position than it was when the listing was suspended in June of 2021.
The Company will keep the market informed as matters progress regarding lifting the Suspension and any corporate developments.
ENQUIRIES:
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.