Iconic Labs PLC (LON:ICON) shares surged on Friday afternoon as the media and technology business revealed its legacy issues are now “under control”.
Earlier this month, the new management team told investors that the issues, including £600,000 of legacy debts, were more complex than it first thought and had taken longer to correct.
READ: Iconic Labs acquires social media agency; raises cash to lay to bed legacy issues
But chief executive John Quinlan and his team have been working to resolve those issues, and the company is now at a point where it can start looking forward.
“The company now has all legacy issues under control and is free to focus on building the Iconic Labs business. It will provide a further Q&A release next week which will principally address operational matters.”
HGSOF 'in it for the long haul'
Also on Friday afternoon, Iconic Labs said it had issued a further 237.83mln new shares to lender European High Growth Opportunities Securitization Fund as part of the £1.38mln fundraise earlier this month. Iconic doesn’t anticipate having to issue a “significant number” of extra shares going forward.
Currently, HGSOF hols a 5.8% stake in the company, and the fund has “communicated to the board a willingness to be a long-term shareholder going forward”. It has agreed to lock in another 70mln shares until at least 17 October.
Iconic added that none of its board members have any interest in HGSOF nor are they entitled to any commission or other payment relating to dealings between the lender and the company.
Instead, it was forced to raise money from HGSOF as it could not do so from other sources because of a limit on the number of shares it could issue.
It expects more ‘vanilla’ funding options to present themselves further down the line as the business develops.
Shares were up 17% to 0.15p on Friday afternoon.