Iconic Labs (LON:ICON ) unveiled to investors this morning that it has completed its acquisition by Greencastle Capital of Maximum Media Limited ("JOE Media Ireland").
The media and technology firm finalised the acquisition last Friday evening, meaning the group has now taken over all operational and strategic management of JOE Media Ireland with immediate effect. Since July 2020, the company has managed JOE Media in the UK.
It said it was working with Greencastle Capital on a capital bid to buy the Joe media brand in both Ireland and Britain back in June 2020. The acquisition has allowed JOE media, which generates in excess of £10m of revenue per year, to be taken out of administration.
The social news brand aimed at young people in the UK and Ireland is best known for its most watched Rugby show in the world, 'House of Rugby' while currently, the company stands as the largest independent digital media company in the Republic of Ireland.
Shares in Iconic Labs have been on a positive trend for the past three months from 0.1p to open at 0.015p following this announcement.
The Company told investors that it intends to ensure JOE Media’s popular existing shows such as 'GAA Hour', 'Unfiltered' and 'House of Rugby' continue to thrive, while developing a range of ‘new and improved content’ at the same time, with new shows and fresh talent.
The group previously outlined that it expects a one-company structure approach covering JOE media in Ireland and the UK to enable a return to profitability in 2021, or even before.
Greencastle agreed that in order to better reflect both the costs of managing the JOE Media group, and the success thus far in managing JOE Media UK, the monthly management fee payable to Icon will be increased from £50,000 to £100,000 with immediate effect.
The Company said its entitlement to a 25% share of all profits remains in place.
Meanwhile, the Company is in negotiations with the European High Growth Opportunities Fund (EHGOF) in respect of the debts still due to EHGOF. It said it continues to work towards a resolution which will result in Iconic Labs having ‘a conventionally funded balance sheet.’
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