20th May 2025 12:09
(Alliance News) - Shares in Iconic Labs PLC resumed trading on the London Stock Exchange on Tuesday, but the company warned it may face administration if it fails to secure an acquisition target soon.
Shares in the London-based media and technology company were restored to trading on the LSE from Tuesday after a period of suspension. The company had requested the resumption, and the Financial Conduct Authority approved it.
Shares in Iconic Labs plummeted 46% to 2.90 after resuming trading.
Iconic back in March reported a swing to a pretax loss of GBP293,860 in the six months to December 31 from a profit of GBP270,132 a year prior.
On Tuesday, Iconic said it remains focused on finding a viable acquisition target after a failed deal to acquire ITS Holdings, the owner of In the Style Fashion Ltd. However, it cautioned that a prolonged failure to identify a new opportunity may jeopardise its future.
The company said its principal funding partner, ABO Infinium Americas OpCo Ltd's WTGO fund, has agreed to cover around GBP100,000 in outstanding liabilities and will continue to provide financial support on a rolling three-month basis.
However, in the event that a target cannot be identified in a "reasonable time frame", it is possible that ABO "will cease to provide such funding", Iconic Labs said.
In such a scenario, Iconic warned it could be forced to wind down operations, realise its assets, and possibly enter administration. If that were to happen, the company’s shares would be delisted and shareholders could be left with little or no value.
"In such an event Iconic would need to wind down its operations, realise any assets and may enter administration, if and to the extent there are creditors of the company who cannot be paid," a statement form the company read.
Iconic already has been through administration, but exited early last year with the intention to find an acquisition. The company also continues to own and develop Gay Star News, an online media platform for the LGBTQ+ community.
By Eva Castanedo, Alliance News reporter
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