Parlux Fragrances Inc. has entered into a licensing agreement with Iconic Fragrances LLC to launch new fragrance lines by Kanye West and Rihanna. Rap mogul Jay-Z is one of the principals of Iconic. The Wall Street Journal reports that in addition to fragrances by West and Rihanna, Parlux is also in negotiations with Jay-Z and a female singer for two other fragrance lines that will launch in the next two years.
Under the new agreement, Iconic will receive royalties and profit sharing as well as options to initially purchase up to four million shares of Parlux at $5 a piece.
Parlux’s Chief Executive Neil J. Katz said, “We believe this proactive investment by Jay-Z, Rihanna and Kanye West is an indication to the market place of the underlying value of Parlux.”
Katz is hoping the new agreement will soon reflect in the company’s stock price which is currently at ninety cents a share. The share price would have to go up considerably before it would make financial sense for Iconic to exercise their options.
Rihanna and Kanye West’s fragrances are scheduled to hit stores by the summer of 2010.