Shares of Iconic Labs PLC (LON: ICON) crashed 14.73% after the company denied the allegations made by Ott Holdings Ltd against the firm’s management board via a press release on Friday.
Some of the claims refuted by the company include the claim that Ott Holdings owns 5.7 billion shares of Iconic Labs, given that the firm is not registered as a shareholder by Iconic Labs’ shares registrar.
Iconic Labs also dismissed claims that it had called for an extraordinary general meeting and that the current board was responsible for the failed financing agreement with the European High Growth Opportunities Securitization Fund (EHGOF).
The board clarified that the previous board had made the financing arrangement with EHGOF and that it terminated the contract because EHGOF failed to remit investment monies severally as required under the terms of the agreement.
Iconic Labs also clarified that: “In the last 22 months the board has had to restructure the previous WideCells business that was close to insolvency and has built a new media business from zero revenues to now running at an annual revenue run rate of over £1mln a year. The large majority of these revenues come from management service agreements that Iconic was only able to obtain because of the board's skills and experience in managing digital media businesses.”
Adding:
It should also be noted that during the last 20 months, the board members and the company's advisors have deferred substantial parts of their salaries and fees in order to invest in the growth of the company.”
The board concluded by saying that it would continue to act in the best interests of shareholders and that if any of the board changes suggested by Ott holdings were to be affected, the entire board would resign.
Iconic Labs share price
.Iconic Labs shares fell 14.73% to trade at 0.0081p having dropped from Friday’s closing price of 0.0095.