EHGO responds to allegations made by Iconic Labs
LONDON, Jan. 19, 2021 /PRNewswire/ -- European High Growth Opportunities ManCo S.A. as the management company of European High Growth Opportunities Securitization Fund (“EHGO”), a fund based in Luxembourg, has responded on behalf of EHGO to certain incorrect allegations made by Iconic Labs (“Iconic”) in a press release on 18th January 2021.
In a statement, EHGO said:
“From the start of the current management’s journey with Iconic, EHGO has consistently provided significant support for Iconic and its management team, as we have for all the businesses that we invest in. We cannot, however, allow the misstatements contained in Iconic’s press releases from 14 and 18 January to stand uncorrected.
“Iconic alleges that EHGO refused to ‘provide the investment monies due under a loan note for which it had subscribed’. What Iconic did not say, however, is that the reason why EHGO did not do so is because the conditions precedent to EHGO’s obligation to do so had not been met by Iconic. Among other things, Iconic were in breach of our financing agreement by not having share issuance authorities in place to cover the conversion of existing and new notes. Accordingly, it was Iconic that did not meet the necessary conditions for the drawdown and EHGO did not breach its financing agreement with Iconic.
“Iconic has also incorrectly stated that there was an agreement in principle between EHGO and Iconic which was “reneged” upon by EHGO. Whilst it is true that EHGO negotiated with Iconic in good faith to try to find a resolution to Iconic’s financing needs and its breach of our financing agreement, and made several proposals, these were summarily rejected by Iconic and its board (litigation is always a last resort for EHGO). Sadly, it was Iconic (and not EHGO) who eventually abandoned negotiations over a settlement (most recently at the end of December) with respect to our financing agreement. Following that, EHGO, which has a duty to its investors to pursue the amounts which are outstanding, had no alternative but to issue proceedings in the High Court in London.
“That said, we are glad that Iconic has confirmed that it ‘has always been and remains open to reaching a settlement with EHGO on commercially practical and sensible terms’. If they genuinely wish to engage again in dialogue with us we will, of course, be delighted to do so and await their contact.
“In the meantime, EHGO will not litigate this matter in the public domain, but rather through the courts as appropriate. Detailed particulars of claim will be served on Iconic shortly.”
Notes to editors
About European High Growth Opportunities Securitization Fund
European High Growth Opportunities Securitization Fund is a fund based in Luxembourg which focuses on financing innovative companies globally that are deemed to be significantly undervalued.
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SOURCE European High Growth Opportunities Securitization Fund
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