- Concern expressed about poor share performance and lack of financing
- Criticism of management and board performance
- EGM has been requested
- Firm faces lawsuit for breach of financing agreement
NICOSIA, Cyprus, Jan. 15, 2021 (GLOBE NEWSWIRE) -- Ott Holdings Limited ("Ott Holdings"), holder of 5,735,555,554 shares of Iconic Labs Plc ("Iconic"), has called for reform at Iconic ahead of an extraordinary general meeting ("EGM") of shareholders which has been requested.
Jean-François Ott, founder and CEO at Ott Holdings, said, "The share performance of Iconic Labs has been absolutely appalling. Management have failed to create any shareholder value since coming to the helm in 2018/2019.
"I also note that Iconic now faces a lawsuit relating to their breach of the financing agreement with European High Growth Opportunities Securitization Fund ("EHGO"), which has been its only strategic financing partner over the last three years. The mismanagement by Iconic of its relationship with its financers is further proof of the incompetency of Iconic's management, as evidenced by the sharp decrease of the price of Iconic's shares by 22.5% on the day of the announcement of Iconic's lawsuit with EHGO.
"The Board has therefore failed to secure anything beyond short term financing, which has done little more than cover the salaries of current employees (including what seem to be the high salaries of the executive team). The Board is seemingly incapable and lacks the experience to secure the long- and medium-term financing that Iconic desperately needs to put its business on the right path towards sustainable growth.
"They have also presided over the disastrous departure of David Sefton, who was brought in as executive chairman in order to transform the company, but who resigned on the day of its Annual General Meeting ("AGM") in 2019 following "rumour and market speculation" about his role at another company. It appears that despite the negative impact of Iconic's involvement with David Sefton, Iconic continues to work with him as a consultant.
"Ott Holdings is of the firm view that a competent and experienced board and management team needs to be installed at Iconic who can preserve shareholder value and secure the needed medium- and long- term financing which Iconic needs to put it on a sound financial footing. Further, the current business of Iconic needs to be rationalized and streamlined, with new potential M&A targets to be identified for growth.
"In order to prevent the complete destruction of the firm we believe that urgent change is required. That is why we have called for an EGM where we will propose a new course for the firm, which we believe will not only rescue the firm from its current state but also lay the foundations for growth in the future. As a first step, and in order to enhance corporate governance, we propose changing three of the board members, and to undertake a complete review of the executive team's contracts and performance. We hope to have the other shareholders' support in our efforts."
Notes to editors
Ott Partners - http://www.ottproperties.eu/
Ott Holdings is part of the group Ott Partners (previously "Ott Properties"), a diversified family office and investment company based in Paris, Berlin, Nicosia and Prague. These key locations serve as a hub in their business throughout Europe where it has extensive knowledge of the markets in Central and Eastern Europe. Ott Partners invests in real Estate, hospitality and property development since 1991. Over the years the company has expanded its range of activities to become entrepreneurs and investors in private equity and venture capital.
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