The media and technology firm said it has raised £747,793 through a fully subscribed placing of around 6.2bn new shares at a price of 0.012p, a 20% discount to its closing mid-market price on Thursday.
Iconic said the placing will allow it to progress towards a “more conventional basis of funding” with the proceeds to be used for general working capital purposes.
The firm also said it has entered into a new more conventional debt facility with Shard Merchant Capital (SMC), which is to be secured for an aggregate amount of up to £1mln, with an initial drawdown of £500,000.
The company added that it has brought to an end any further issuance of shares to European High Growth Opportunities Securitization Fund (EHGOF) and has agreed with SMC, pursuant to the terms of the debt facility, that it will not enter into a transaction with EHGOF for a 3 year period.
“I am very pleased that following hard work we are now able to follow through on our commitment to replace the EHGOF facility with more conventional funding. Many shareholders have told us that this was critical in their view, and it is great to be able to deliver the news that they have wanted for so long. Now we have cancelled the EHGOF facility and put in place a more conventional debt funding facility, it will remove the overhang of continuous conversion of convertible instruments into Ordinary Shares and the dilutive effect that had. With this funding in place we will be able to focus on executing our strategy as previously outlined”, Iconic Labs chief executive John Quinlan said in a statement.
“On an operational level, we believe the recent doubling of the base monthly management fee under the JOE media deal is a gamechanger and builds upon the commercial traction that we are achieving with these underlying businesses – in which we have a 25% profit share. To give some examples, since taking over the management of JOE the Company has not only secured several major sponsorship contracts but has increased programmatic advertising revenue of 300%. We have also significantly increased revenues at TLE, with programmatic advertising revenue more than doubling in recent months”, he added.