The media technology firm said under the terms of the deal it will immediately manage all operational and commercial aspects of the JOE media businesses in the UK and Ireland following regulatory clearance. In return, the company will be paid a monthly fee of £50,000 as well as 25% of all profits if certain targets are met.
JOE media is the largest independent digital media company in the Republic of Ireland and has been one of the fastest growing media companies in the UK since it launched in 2015. The brand is well known for its ‘House of Rugby’ series, the most-watched rugby show in the world, and generated over £10mln in revenue in 2019.
Iconic said it expects the contract to contribute “a significant amount of revenue” which will enable it to become “operationally profitable within three months”.
“We are delighted to have been involved in Greencastle Capital's successful bid for JOE media, which involved a very competitive sales process among more than 15 different bidders”, Iconic Labs chief executive John Quinlan said in a statement.
“The acquisition of the JOE media UK businesses by Greencastle Capital is by far the biggest deal we have been involved with as a company so far… With JOE media's credibility in specific areas like politics and sport, Iconic Labs now has access to some best in class assets through the management services contract”, he added.
Quinlan also said that revenues from the deal meant the firm had reached a stage where it can consider other financing arrangements and hoped the agreement will “provide an opportunity for the company to raise sufficient equity capital to be able to look at the company's options for more conventional equity raises and/or conventional debt” to finance its growth on a more conventional funding basis.
The company's shares surged 51.2% to 0.016p in mid-morning trading on Wednesday.
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