LONDON: Iconic Labs has agreed Heads of Terms to acquire social media agency Social Alchemist Limited, which will bolster Iconic Labs’ offering, build critical mass within its social media consultancy division, enhance content generation and importantly provide proprietary distribution channels.
Iconic Labs is a multi-divisional new media and technology business. Social Alchemist is a social media focussed agency with three primary divisions which will complement and expand Iconic Labs’ current services.
The company also has secured further financing for a gross amount of up to £1.375 million to provide capital to continue to resolve the outstanding legacy issues associated with the previous operating stem cell business, fund the cash consideration element of the acquisition, as well as for general working capital purposes.
Chief Executive Officer, John Quinlan, said: “We have an aggressive growth strategy and Social Alchemist, our maiden acquisition, represents a classic example of a growing and innovative business that will add value to our offering. The divisional structure offers online media consultancy and content generation, but importantly distribution through its established platforms which already connect with over 12 million people. Social Alchemist, which has an established client list, is highly complementary and we will benefit from synergies and scale as we pitch for new business and look to capitalise on the huge opportunities that both parties recognise are available in the online digital space.
“With the additional capital we are able to focus all our efforts on building a successful business both organically and through selective, value accretive acquisitions. The legacy issues attached to the old business have been greater than we anticipated and extremely frustrating for all parties and stakeholders. We have uncovered unforeseen subsidiary debts that are attributed to the Company which has created significant work to solve and this has meant that we have had to prioritise this over fully launching the new business of Iconic Labs. However, now, with a clean slate, we can utilise our wide industry contact base and build a profitable business, taking advantage of a fragmented market.
“To give some clarity for shareholders, the issue and subsequent exercise of the warrants resulting from this loan financing and the issuance of subsequent shares attached to the warrants cannot take place until the Company has issued an approved prospectus, convened a general meeting and its shareholders have passed the necessary resolutions. The anticipated timeline for obtaining an approved prospectus and issuing it to the shareholders is within six months of the date of the Financing Agreement and we anticipate being no shorter than three months from that date.
“I am excited about the future and look forward to announcing regular developments to the market. We have a number of live client leads, as well as additional niche acquisition targets which, once executed, will assist us in delivering our strategy of building Iconic Labs and creating shareholder value.”
Social Alchemy CEO Jono Yates said, “Iconic Labs is building a platform that will gain critical mass and service. We know how successful the Iconic Lab team has been in rapidly growing social media-based business and I am delighted to bring my team to widen the offering and pool resources to maximise on the huge opportunities in our sector. We believe in the model set out by the Iconic team underlined by our commitment to take equity in the business. This is a nascent company with big ideas, and I look forward to building a business with John and his team.”
Edited by Nayyar Iqbal