Iconix Brand Group Inc (ICON) shares started the Thursday, June 17, 2021, trading be losing 1.87% and close the normal trading session at $3.14 per share. Later in the after-market session, ICON stock gained 6.05% and reached $3.33 per share. ICON shares have risen 170.69% over the last 12 months, and they have moved up 28.16% in the past week. Over the past three months, the stock has gained 26.61%, while over the past six months, it has declined 173.04%.
Let’s discuss its recent news and developments briefly.
Go-private Deal with Lancer Capital
On June 11, 2021, Iconix Brand Group, Inc entered into a definitive agreement and plan of merger to be acquired by Iconix Acquisition Corp which is an affiliate of Lancer Capital, LLC, in an all-cash transaction that values Iconix at approximately $585 million, including net debt.
According to the agreement, Lancer Capital, LLC will acquire all of the outstanding shares of Iconix’s common stock for $3.15 per share, in cash which represents a 28.6% premium when compared with the closing share price on June 10, 2021.
Iconix Brand Group facing legal battles on the announced deal with Lancer Capital
Iconix Brand Group facing several legal challenges and class actions by many reputable law firms over the recent deal.
On June 17, 2021, Halper Sadeh LLP, a global investor rights law firm, announced that it is investigating potential violations of the federal securities laws and/or breaches of fiduciary duties relating to its sale to an affiliate of Lancer Capital, LLC for $3.15 per share in cash.
On June 16, 2021, Juan Monteverde, founder, and managing partner at Monteverde & Associates PC said that it is investigating Iconix Brand Group, Inc relating to its proposed acquisition by an affiliate of Lancer Capital, LLC.
Iconix Brand Group is the new exclusive licensee of Ed Hardy
On May 27, 2021, American Exchange Group signed a three-year licensing deal with Iconix Brand Group, Incto be the new exclusive North American licensee for Ed Hardy watches, jewelry, handbags, and accessories. The first collection will launch in Summer 2021 with watches, sunglasses, hats, and additional Summer accessories.
Recent financial results announcement
On May 13, 2021, Iconix Brand Group Inc released its financial results for the first quarter ended March 31, 2021.
Q1 2021 financial highlights
- Iconix Brand reported total revenue of $23.6 million for Q1 2021 compared to $28.0 million in Q1 2020.
- Adjusted EBITDA was $11.9 million in Q1 2021 compared to $11.6 million in the prior-year quarter.
- Operating income was $25.3 million in Q1 2021, as compared to an operating loss of $4.9 million for Q1 2020.
- GAAP net (income)loss attributable to Iconix for the first quarter of 2021 was a net income of $4.2 million, compared to a net loss of $21.8 million for the first quarter of 2020.
- GAAP diluted EPS was $0.26 in Q1 2021 compared to a loss of $1.89 per share in Q1 2020.
Well, as of this writing there is no new development in the past 48 hours which could justify the ICON flip on Thursday. ICON stock can continue its positive momentum on Friday as well.