WideCells Group PLC (LON:WDC) shares rose 11% after it said it had made a strong start to “establishing its offering and building out its presence” in the new media space as it announced plans to change its name.
It will become Iconic Labs PLC, taking the name of the group that joined the company in March, which marked a change of strategy for the former stem cell business.
WATCH: WideCells Group hopeful of signing its first contract within weeks
Iconic is run by John Quinlan and Liam Harrington, who were the founders of UNILAD, the world's largest social media publisher.
The team “has successfully tried, tested and soft launched its initial media and advertising focused agency model”, a company announcement said.
“Significant interest and business development success has already resulted in multiple potential revenue contracts with immediate conversion prospects,” it added.
“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.”
Prudently adding staff
To cope with the volume of work, Iconic is looking to “prudently add” members of staff to its team.
Turning to the stem cells business, management is “continuing to assess its options” having spent in excess of £900,000 attempting to resolve legacy issues. A decision on its future is expected imminently.
Widecells said there is a further £500,000 potentially available from the European High Growth Opportunities Securitisation Fund to support the ongoing business.
"The company remains focused on a cash flow driven business model with pre-identified contracts, a defined path to profitability and exceptional growth prospects,” said chairman David Sefton.
“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 ongoing.
“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.”
The stock rose 0.04p to 0.395p.
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