Iconic Labs Share Discussion Threads

[yorgi] 07/2/2020 23:34

Agreed Zen, although I’m doubtful there are many shorting. There will always be trolls who just get some sad pleasure in negative attacks on companies all over LSE.

[yorgi] 07/2/2020 23:32

Quite right Berny, the RNS was clearly well received by the market as was seen by the buying and late on Friday afternoon as well.

[yorgi] 07/2/2020 23:29

Crucially of course ICON is led by a man committed, focused and I believe with the experience and skill set to accomplish what he has set out to achieve with ICON.

I’m looking forward to an interesting and strong year in 2020 with clear progress as JQ has outlined in his recent interview.

I believe he can but whether he delivers remains to be seen the financial backer clearly believe he can.

[zen12] 07/2/2020 23:25

Yes ICON in incredibly strong position after than excellent RNS. Derampers/shorters should be very worried this weekend...!Sorted funding, even better managed to secure x5 market cap if needed. Truely going for it with sorting balance sheet, this is a hugh turning point for this tiddler gla

[bernymadoff] 07/2/2020 23:21

Well the market reaction was very positive with lots of buys coming in inside the last 15 mins of trading. Most will not see the rns until much later but I'm confident we will see a lot more buys come Monday from traders and those with higher averages who can now see a path to a potentially very profitable business and want to average down. We will also be seeing some positive news starting next week and leading in to the GM . I'm sure of that.

[yorgi] 07/2/2020 23:20

I have consistently commented that in my view the present market cap at around £1-£1.25m
is far from demanding and if the flow of news of progress continue then we could easily see this rise significantly over the coming months.

[yorgi] 07/2/2020 23:17

Whether we see a further rise on Monday remains to be seen but I am optimistic that we will see a positive day on Monday, how positive remains to be seen.

[yorgi] 07/2/2020 23:16

I have carefully read through the RNS this evening and ICON and in my opinion is now in a very strong position to move forward and grow.

Finance has been sorted and in my view probably the best they could achieve but still a fair package.

We have a very encouraging trading update and the likelihood of more deals to come to grow the business so a lot to look forwards to over the coming weeks.

[amd75] 07/2/2020 22:39

Nice effort mate . Very well written analysis mate . Thanks

[bernymadoff] 07/2/2020 22:02

I'd appreciate it if someone could post my analysis on L.S..E as I don't have an account there

[bernymadoff] 07/2/2020 21:01

ICONIC LABS #ICON
Review of RNS issued 7 February 2020

Trading update reads well. Business is building significant momentum with revenues already being booked and a strong pipeline of deals that exceeds BOD's expectations. But most eyes will be on the renegotiated finance with EHGOS.

Finance deal
Key points:

1. Reduction of existing debt by 30% to circa £950k
2. New agreement to borrow up to £5m with a minimum commitment of £2m
3. Loans will be in the form of CLNs at 90% VWAP
4. Funds to be used mainly for working capital and acquisitions
5. Capital restructuring to reduce nominal value of shares to 0.00001

Pros:

1. Removes the elephant in the room that's been weighing on the share price
2. Gives access to funds to enable growth. If the company continues to increase revenues then the new finance package will allow them to use that cash for growth while issuing equity at a significantly higher share price to repay EHGOS.
3. Getting a better package from existing lender shows confidence in company. EHGOS will have had visibility of forward revenues and pipeline to agree to this.
4. New arrangement gives the share price freedom to rise organically. EHGOS will know from recent experience that in order to be repaid they will need to be sensible how they sell the allocated shares.
5. The company expects the arrangement to give them a clean balance sheet in H2
6. In the very short term I would think the company will be releasing lots of value accretive news, not least because shareholders need to vote the package through at a general meeting at the end of Feb. From now until the GM there is absolutely no danger of any dilution giving an opportunity to traders and investors alike to buy a rising share price
7. The company says that this package is part of a clear strategy "whereby near-term growth is conventionally funded through net free cashflow and the issuance of ordinary shares in an open offer or placing, rather than through facilities which include variable conversion rights."

CONs

1. For this to be successful requires them to start delivering revenues and lifting the share price to minimise dilution to shareholders and restore sentiment. It's as simple as that.
2. Obviously shareholders will be diluted by the CLNs but providing they are accompanied by a corresponding rise in revenues the net effect could be cash neutral or even cash positive




VERDICT

There’s virtually nothing baked into the current £1m market cap. The company is priced at almost cash shell value. So risk reward is very good at these levels. Especially when you consider that the guys at the helm are market leaders in their field of work.
Tech companies like ICON usually attract a premium valuation on account of their potential (see for example #BIDS ).
Now that the finance issue has been resolved there’s a lot more upside than downside from these prices.

[amd75] 07/2/2020 20:48

Anyways his excuse to deramp share that company can't issue shares less then it's nominal value is sorted now . Nominal value is lowered so company can issue shares ..... funding is not the issue now . Now company just need to release some numbers and that's it we are sorted

[amd75] 07/2/2020 20:45

Today's rns must be good that's why our residential troll is quite otherwise he would be here like a rash . Or he must be consulting to his mate tw for new lie to mislead holders

[katsy] 07/2/2020 20:39

I'm not on twitter but what's your twitter name? I can use my wife's account

[bernymadoff] 07/2/2020 19:49

Katsy are you on Twitter? I'm going to be writing a thorough pros and cons later. I'll try and post it here as well

[yorgi] 07/2/2020 19:19

Increasing revenues is the important aspect for now and profits to follow in due course.

The important part is building the business to grow the revenues.

[katsy] 07/2/2020 18:53

Ok, can people help me disect this RNS. Whilst the trading statement is encouraging, what does the new funding agreement mean for existing shareholders. By changing the nominal value from .0025 to .00001 what does that mean for the existing market cap or share price. Does anybody truly understand the new funding agreement. I'm assuming it's not money for nothing.

[jammytass] 07/2/2020 18:29

3 x revenue ... how much profit?

[bernymadoff] 07/2/2020 18:09

The rns also mentions they are looking at further GSN style acquisitions. I know from talking to the company that ome acquisition they're negotiating is 3 times the size of GSN and 3 times the revenue. Yes £1.5m per annum

[yorgi] 07/2/2020 17:54

The trading update is very encouraging 😊

Trading Update

The Company's business is now generating revenues and starting to achieve real growth and traction. As evidenced by recent announcements the management team has signed several contracts and further has a strong pipeline of potential transactions. It has also successfully launched its first platform with the acquisition and revamp of GSN, the leading LGBT website. Building a business based on growing revenues in the short and medium term while developing and building the long-term value of brand assets is something the management team did successfully at UNILAD and they believe a similar model will be even more successful at the Company.

The launch of the new GSN website is particularly significant because it not only provides revenues and access to the LGBTI market, estimated to be in the region of $3.6 trillion of annual spend globally, but also secures for the Company a platform and brand with credibility in such a valuable sector.

Since the launch of the new GSN website, it is attracting over a million monthly users and in just one month since the launch the Company has secured initial revenues and has a sales pipeline which is ahead of management's expectations. GSN represents a blueprint of the overall plan for the Company, building or acquiring assets that have great value potential and can, when combined with the expertise of the management team, potentially become world leading brands in valuable sectors.

The management team considers that value has already been created in the Company's business, and that this is not fully recognised in the current share price. Management recognises that the share price is currently being held back because of the dilutive effects of, and uncertainty relating to, the historic debt position inherited from the old WideCells business, and which continues to have an impact on the current financing position of the Company.

In light of the above, the board wishes to provide clarity on the existing arrangements and set out a clear plan to achieve its stated ambition to move to a clean balance sheet, whereby near-term growth is conventionally funded through net free cashflow and the issuance of ordinary shares in an open offer or placing, rather than through facilities which include variable conversion rights.