Iconic Labs (LON:ICON ) said it has entered into a management services contract with Greencastle Capital under which Iconic will be responsible for the operational and strategic management of Lovin Media Group following Greencastle’s acquisition of the media firm.

Last week, Greencastle announced the completion of its acquisition of Lovin Media Group, a digital and social media publisher which is best known for its lifestyle and entertainment content specifically focusing on things to do in Ireland and in particular in the city of Dublin.

The contract between Iconic and Greencastle will maintain the same terms as in previous contracts. This means Iconic will be paid a monthly management fee of £10,000 plus external costs and receive 25% of all profits if certain revenue and profit targets are met.

The acquisition of Lovin Media follows on from Greencastle’s acquisition of the JOE Media Ireland in October and JOE Media in the UK in July. Iconic said it expects a one-company structure approach covering both JOE brands to enable a return to profitability in 2021.

Iconic believes that Lovin Media, as one of Ireland's most recognisable online publisher brands which is operationally profitable, is ‘an ideal addition’ to its portfolio of brands including JOE and Her brands which will deliver a new and valuable audience demographic

The company intends to help scale the business and revenues as well as ‘build on the great work the team at Lovin' Media which the group has confirmed will remain a separate brand.

John Quinlan, Chief Executive of Iconic Labs, commented, "This new management services contract sits perfectly with our existing contract to manage JOE and Her.”

Quinlan added that Lovin Media will enable synergies across the businesses in certain functions as well as offer “a complementary and exciting brand to discuss with clients.”

“We will also apply our tried and tested methods to increase reach and revenues and look forward to successfully growing Lovin' Media alongside JOE and Her,” he also noted.

Shares in Iconic Labs have traded within a tight range over the past three months and opened 7.14% higher this morning at 0.015p 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.  

Last week, 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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