Iconic Labs PLC (LON:ICON) said it is now generating revenues and expects growth to continue “significantly” across 2020.
In a trading update, the media and technology firm said its business was continuing to show “early signs of growth” with two contracts announced and other opportunities currently under discussions.
READ: Iconic Labs surges as it inks new GSN marketing agreement with major airline
As a result, the company said it is aiming to “at least cover all general and administrative costs during the second half of 2020”.
In order to ensure it was sufficiently funded in the interim, and to resolve an accrued net asset deficit of £2.38mln as of 28 February, Iconic Labs said it had submitted an advanced near final form prospectus to the Financial Conduct Authority for its approval prior to publication, which once published will allow the company to draw down tranches from a financing and settlement agreement announced in early February.
The company said the operation debts of its business were less than £150,000 and include deferred salaries from the directors. It had fully budgeted for these amounts and still plans to draw down a total of £2mln, the minimum possible under the settlement agreement.
“When combined with increased revenues, this capital should enable the company to meet its previously stated aim of resolving balance sheet concerns prior to the end of 2020”, Iconic said.