(Alliance News) - Media and technology business Iconic Labs PLC on Friday said it has secured initial revenues following the launch of the revamped Gay Star News website.
One month since the launch, Iconic Labs said the site has attracted over one million users and hailed its sales pipelines, which is ahead of management expectations.
Iconic Labs said: "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 USD3.6 trillion of annual spend globally, but also secures for the company a platform and brand with credibility in such a valuable sector.
"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."
Iconic Labs added that it has entered into a financing arrangement worth up to up GBP5.0 million with lenders European High Growth Opportunities Securitization Fund. As part of the agreement, Iconic Labs has committed to drawing down at least GBP2.0 million of funds. The decision to draw down more as it its discretion, the company added.
Under the terms, Iconic Labs will be entitled to a GBP250,000 of funding per month, and will in turn issue the investor with convertible loan notes.
"The notes can be freely transferred, will not be listed on any financial market and are capable of being converted into ordinary shares," Iconic Labs explained.
Iconic Labs added: "The funds available under the financing and settlement agreement are intended to cover working capital and growth needs, also includes funds to cover legal costs that were incurred dealing with the old WideCells business."
Iconic Labs, which formerly did life as WideCells, was once focused on the stem cell healthcare industry.
The company was trading 9.0% higher at 0.079 each in London shortly before market close on Friday.
By Eric Cunha; ericcunha@alliancenews.com
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Iconic Labs (ICON)