The Iconic Labs PLC (LON: ICON) share price spiked 20.7% higher after receiving two valid Conversion Notices from the European High Growth Opportunities Securitization Fund (EHGOSF) and the resignation of a director.
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The multi-divisional new media and technology company revealed that Wilhelmus van der Meer had informed it of his decision to resign from the board of directors immediately on Friday, 27 January 2023. The company is in active discussions to replace him.
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However, the spike higher did not last as ICON shares were trading in negative territory at the time of writing. Still, investors stuck with the company’s shares since it went into administration can now sell them after they resumed trading on LSE on 24 January 2023.
Iconic Labs has undergone a massive restructuring over the past one and a half years, including reducing claims against the company. The firm’s secured creditors reduced their claims against Iconic Labs from £4,200,000 to £750,000, to be repaid via the issuance of convertible loan notes.
The company’s unsecured creditors also slashed their claims by 75% from £1,070,000 to £267,000, while the EHGOSF, its leading financier, also reduced its claim against Iconic from £3,000,000 down to £750,000. The company will repay EHGOSF by issuing convertible loan notes.
The restructuring effort has left the company in a solid financial position as it seeks to rebuild its business while at the same time repaying some of its pending liabilities. It was encouraging to see ICON shares resume trading at the same level they were in June 2021 when the company entered into administration.
Iconic Labs is yet to release its plans, which should happen soon now that the company’s shares had resumed trading on the London Stock Exchange as required by the company’s Voluntary Agreement (CVA) agreed by the firm and its creditors before it exited administration.
Meanwhile, the future is wide open for Iconic Labs. I am interested in seeing what steps the company shall take this year to secure new business contracts and rebuild its operations.
*This is not investment advice.
Iconic Labs share price.
The Iconic Labs share price spiked 20.67% higher to trade at 0.0181p, from Friday’s closing price of 0.0150p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.