WideCells is pleased to announce an update on operations, in particular regarding its Iconic Labs new media and technology business, which is focussed on providing online marketing, content and technology driven products.
Iconic Labs Operational Update:
Since the Iconic Labs team joined in
March 2019, the Company has made strong progress in establishing its
offering and building out its presence within the new media marketing
space. The team, led by John Quinlan and Liam Harrington, who were
founders and key drivers behind UNILAD, the world’s largest social media publisher, has successfully tried, tested and soft launched its initial media and advertising focussed agency model.
The Company is conducting a strategy of
balancing long and short-term revenue by partnering with advertising and
marketing agencies, assisting with their existing contracts, as well as
pitching for larger contracts independently. The methods of
accomplishing this strategy are targeting contracts allocated to
agencies that are resource or expertise constrained, joint pitching for
distinct campaigns, along with a primary focus on independent pitches.
In addition, the Company is looking at
opportunities to develop social media publishing channels, whether
through creation in-house or by acquisition. Development of these
publishing channels is intended not only to provide a source of revenue
independent from agency and consulting revenue, but also, by providing a
targeted, captive platform, to complement and enhance the strategy and
consulting services.
Revenue Generation:
Significant interest and business
development success has already resulted in multiple potential revenue
contracts with immediate conversion prospects. It is expected that the
Company will finalise at least one such contract during May, with
initial revenues being received from June. The current pipeline includes
retained contracts, distinct campaigns and joint partnerships on campaign activations.
The initial work and progress made on the
sales pipeline has been highly successful. However, the volume of work
looks likely to require additional capacity and, as a result, the team
is looking prudently to add members of staff to ensure that projects and
engagements are developed and delivered to the exacting standards of
the team. This personnel growth will be undertaken gradually and
carefully and is in line with lean cost strategy of adding personnel as
revenue is generated and acquisitions are made. Additionally, in line
with the stated strategy, the Company will look to scale through
appropriate acquisitions that are considered value accretive and will
augment the rapid growth of the business.
Change of Name:
Progress continues to be made with the
Company’s change of name to Iconic Labs Plc. Documentation is being
prepared and further announcements will be made in due course.
Operational Update: Stem Cells Business:
Despite significant efforts to
restructure this part of the business and improve its viability, a
number of senior staff from the stem cell business have departed and, as
a result, the Company is continuing to assess its options with regards
to this business, with a decision to be made imminently on its future.
The Company has already spent in excess of £900,000 in resolving legacy
issues and continues to work on legacy liabilities associated with this business on an ongoing basis.
Update on European High Growth Opportunities Securitization Fund (“HGOSF”) Facility:
HGOSF remains supportive as evidenced by
the inclusion of a conversion floor price mechanism as announced on 1
May 2019. This puts a notional floor on the price of 0.4p. Of the
£1,600,000 originally announced, there is a further £500,000 potentially
available under the drawdown facility. The Company remains grateful
for the support of HGOSF, without which the Company would almost
inevitably have failed. This would have led to the complete loss of
shareholder equity as well as very significant losses for former
employees, counterparties and contractors, against which the legacy
business had no revenues or assets of any material value to be realised.
Shareholder Update:
The Company acknowledges that there have
been considerable changes to the size and composition of the shareholder
register over recent months and has requested a shareholder analysis to
be undertaken. The Company will update the market and website once the
results of this analysis are complete.
Executive Chairman, David Sefton, said: “The
Company remains focussed on a cash flow driven business model with
pre-identified contracts, a defined path to profitability and
exceptional growth prospects. I am delighted with the progress made
already and we are well on our way to securing initial revenues which we
believe, through the interest shown in our proven offering, will
increase rapidly as we continue to win contracts, bring in new
personnel, and build Iconic Labs market presence.
“It is also important to note that the
initial traction has been generated before there has even been a formal
launch of Iconic Labs and while the restructuring process is on-going.
This is clearly a testament to the team. The new business and
acquisition pipeline already generated is set to grow significantly as
we broaden the commercial marketing strategy of and formally launch
Iconic Labs.
“I look forward to the completion of the
restructuring, which is close, the official name change, and with the
support of our investors, an exciting future for the Company.”
Chief Executive Officer, John Quinlan, said: “With just a soft launch we have already made inroads into our market and have received extremely positive feedback on our plans and offering. We understand the space and are well placed to exploit insights, network and proprietary technology to provide online marketing and create unique content for brands.
“With first contracts in place and
revenue due, we have already reached the first stage of our growth
strategy. I look forward to updating investors on our progress and
would like to thank all stakeholders for their support.”
**ENDS**
For further information, please visit the Company’s website www.iconiclabs.co.uk or contact:
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Shard Capital Partners LLP
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Co-broker – Damon Heath, Erik Woolgar
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Tel: +44 (0) 20 7186 9950
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finnCap Ltd
St Brides Partners Limited
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Co-broker – Chris Raggett, Scott Mathieson
PR – Melissa Hancock, Juliet Earl
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Tel: +44 (0) 20 7220 0500
Tel: +44 (0) 20 7236 1177
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