Iconic Labs PLC (LON:ICON) has delivered an update to investors following the relaunch of its LGBTI+ news website, Gay Star News (GSN), at the end of January.
The media firm said since the relaunch the website was attracting over a million monthly users and has already secured initial revenues and a sales pipeline ahead of management expectations.
READ: Iconic Labs relaunches Gay Star News four months after acquisition
“GSN represents a blueprint of the overall plan for the company, building or acquiring assets that have great value potential and can, when combined with the expertise of the management team, potentially become world leading brands in valuable sectors”, the firm said, adding that it believed its value was not currently reflected in the share price which was being held back by the “dilutive effects of, and uncertainty relating to, the historic debt position inherited from the old WideCells business”.
With this in mind, Iconic said it had entered into a financing and settlement agreement to cover its working capital and growth needs as well as legal costs that were incurred dealing with the old Widecells business and the associated costs of issuing a new prospectus.
The company also said it will propose a resolution at a general meeting on 27 February to reduce the nominal value of its existing ordinary shares to £0.00001 from £0.0025.
Iconic Labs shares were 4% higher at 0.08p in early trading on Monday.