Iconic Labs (LSE:ICON ) announced that it has secured a number of new contracts for JOE Media for the production and distribution of bespoke social content worth more than £0.75m.
The new contracts are with clients in a number of sectors including gambling, video games, online music streaming are in excess of £750,000 and have all commenced in Q4 2020.
Under the management services agreement, the Company now manages all commercial aspects of the JOE and Her media businesses in the UK and Ireland.
The Company detailed that it will receive a monthly retainer fee of £100,000 plus external costs and will also receive 25% of all profits if certain revenue and profit targets are met.
Since 2020, the multidivisional new media and technology business has managed JOE Media in the UK and Ireland, respectively, following its acquisition with Greencastle Capital this year. JOE media has previously been described as 'most influential publisher' by the BBC.
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.
The completed acquisition meant that JOE media, which generates in excess of £10m of revenue per year, was subsequently taken out of administration by Greencastle Capital.
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.
Shares in Iconic Labs have traded within a tight range of 0.01p and 0.02p over the past month to open 18.37% higher this morning at 0.0145p following the announcement.
Reasons to Follow Iconic Labs
Iconic Labs is a multi-divisional new media and technology business positioned to deliver consultancy, products, marketing and distribution with a focus is to expand its content platform, suite of digital brands, and technology products organically and through acquisitions.
The company completed its acquisition by Greencastle Capital of Maximum Media Limited ("JOE Media Ireland") last month where it took over the operational and strategic management of JOE Media Ireland. Since July 2020, Iconic has managed JOE in the UK.
Iconic had been working with Greencastle on a capital bid to buy the Joe media brand in both Ireland and the UK back in June 2020. The follow-on acquisition has allowed JOE, which generates in excess of £10m of revenue per year, to be taken out of administration.
The combined JOE Media businesses generated in excess of £10m of revenue in FY 2019. The UK business grew annual revenue at a rate of 117.7% between 2016 and 2019.
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.
Recently, Iconic told investors that it had raised £747,793 by way of placing at 0.012p per share and entered into a new debt facility with Shard Merchant Capital Limited ("SMC").
The facility with SMC is a conventional senior secured loan that has been entered into in order to ensure that the Company has sufficient working capital for its next phase of growth.
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