The company said while EHGOF has filed the claim in the High Court in London, it has yet to file particulars of claim setting out its exact nature, and therefore the firm said it is unable to respond or comment in any detail until such time as EHGOF files the necessary documentation to evidence its alleged claim.
Iconic said it assumes that the claim may be being made in respect of amounts that are allegedly due to EHGOF under specific loan notes, although the claim form makes no reference to these loan notes, instead referring to agreements with EHGOF that were, against the wishes of EHGOF, unilaterally and validly terminated by the company last year. The company said it reserves its position at this time on the merits of the alleged claim pending receipt of fully particularised Particulars of Claim and a full investigation of the claim.
The firm also said it has kept Greencastle Capital appraised of this development, and Greencastle has informed the company that while it is monitoring the situation carefully, it does not consider that there are yet grounds upon which it might seek to terminate either of the management services agreements that exist between Greencastle Capital and Iconic Labs, and which are in respect of the JOE Media and TheLondonEconomic businesses.
Iconic also noted that discussions had taken place during the course of the last year with Alpha Blue Ocean (ABO), the investment manager of EHGOF, as to a settlement of the amounts due under the loan notes, with the company believing that an agreement in principle had been reached. However, the firm said since December 2020, ABO reneged on that agreement in principle and to date, ABO has refused to propose any practical alternative agreement or enter into meaningful discussions with the company.
The group said it will update the market in due course.