Iconic Labs PLC Management Services Agreement (1465M)
12 September 2019 - 8:45PM
UK Regulatory
TIDMICON
RNS Number : 1465M
Iconic Labs PLC
12 September 2019
12 September 2019
Iconic Labs Plc ("Iconic Labs" or the "Company")
Management services agreement with Medium Channel Media
Limited
Iconic Labs Plc (LSE:ICON), a multi-divisional new media and
technology business is pleased to announce that it has taken a 24%
shareholding in Medium Channel Media Limited ("MCM") a media
focussed investment company, in return for the provision of
management and consultancy services ("Management Services
Agreement" or "MSA") and the provision of a loan for GBP150,000 to
be used solely for working capital purposes ("the Loan").
Contemporaneously, MCM has entered into a conditional agreement to
acquire Tab Media Ltd ("the Acquisition"), publishers of The Tab
(www.thetab.com), the UK's leading youth and student culture
focussed publisher.
The Tab is currently divided into two revenue centres:
programmatic revenue; and branded content, which develops specific
targeted campaigns. Under the terms of the Management Services
Agreement, 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.
The Management Services Agreement provides for fees to be
payable by MCM to the Company on a monthly basis and provide a
minimum retainer revenue of no less than GBP25,000 a month. The
Company believes that its team's experience in building UNILAD will
be critical in ensuring the success of this strategy, which will
enable The Tab to continue growing its market reach and position
while at the same time improving its financial performance. The
Company has also agreed with MCM that Iconic Labs will receive a
substantial percentage of all profits if certain revenue and profit
targets are met. The Tab achieved revenues of GBP1.28 million in
the FY 2018, and the Company is confident that, with the addition
of the Iconic Labs team, a significant increase in revenue and
profitability is possible in the short term. The Iconic Labs board
believe that the potential total revenue and cash payments to
Iconic Labs will exceed GBP150,000.
MCM has been established by Starnavesse, a company controlled by
Richard Thompson, one of the non-executive directors of Iconic
Labs. MCM was created by Richard Thompson for the purpose of
investing in media and technology companies. Richard has extensive
experience in investing in public and private companies and was the
founder investor in Fonix Mobile, which grew to achieve revenues of
c.GBP55 million in 2018.
He has declared his interest to the Company and has not
participated in the Board's decisions to make this investment,
provide the services of certain senior management under the MSA or
provide of the Loan. The MSA shall continue until such time as
either party serves notice on the other to terminate the
arrangement. The Loan is repayable on demand by Iconic Labs and
attracts interest at the rate of 5% per annum.
The Company will provide a further update on its investment in
MCM once the acquisition of The Tab by MCM has completed.
Chief Executive Officer, John Quinlan, said: "We are constantly
looking to build our platform and revenue streams to become a
leading participant in the new media space. We continue to make
progress at Iconic Labs and through our commercial contract and
investment of 24% in Medium Channel Media we are expanding our
networks and business lines. Importantly we also get to work
closely with The Tab through the Management Services Agreement to
build on its position as the number one market leader in the UK
student market and through our investment have exposure to any
future equity upside.
"Given our experience in creating UNILAD, which started as a
student publisher before we developed it into the world's largest
social publisher with revenues of c.GBP 10m, we feel confident in
our ability in adding value and increasing revenues at The Tab
through our involvement once MCM has completed the Acquisition. We
have always thought they had the most credible brand in the sector
and we are looking forward to working on it through our agreement
with MCM.
"We are delighted to have played such a critical role in MCM's
decision to agree to acquire The Tab. The structure of MCM and the
Company's investment of 24% allows us to participate in
opportunities that we feel we can add significant value and build
critical mass for the wider operations of the business."
Business Development Officer, Liam Harrington, said, "The Tab is
the number one market leader in the student market in the country
with an exciting targeted product that we believe we can assist in
fulfilling its true commercial potential. With an expansive local
network for distribution and quality writers and the largest
presence within universities for distributing content, we believe
the foundation is in place whereby we can utilise our past
experience of rapidly growing social media platforms."
**ENDS**
For further information, please visit the Company's website
www.iconiclabs.co.uk or contact:
John Quinlan Iconic Labs Plc c/o SBP Tel: +44 (0) 20
7236 1177
Damon Heath Shard Capital Partners Tel: +44 (0) 20 7186 9950
LLP
Erik Woolgar Shard Capital Partners Tel: +44 (0) 20 7186 9950
LLP
Melissa Hancock St Brides Partners Tel: +44 (0) 20 7236 1177
Limited
Juliet Earl St Brides Partners Tel: +44 (0) 20 7236 1177
Limited
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END
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