With more than 20 years' experience in the consumer electronics retail sector, Bhav has built a substantial network of major UK and European retailer, e-tailer and enterprise channels which he is currently converting to sales for CloudTag. The Company has bolstered the European sales efforts with the addition of Bhav Dattani as Director of Sales, as announced on the 12 September 2016. The Company has also taken the opportunity to continue to improve the product using its newly recruited specialists, including the Company's Chief Creative Officer Peter Griffiths and the creative team. The delay in SC placing purchase orders is partly attributable to the decision by CloudTag to move its manufacturing capabilities to a larger scale manufacturer, as announced on 12 September 2016. Subject to the finance referred to in this announcement being put in place, the Company is minded to extend the terms of the agreement with SC in order to accept orders placed by SC in 2017 against the balance of SC's order commitments for Q3 and the Q4 2016, subject to SC agreeing to such extension.ĬloudTag continues to actively pursue its stated strategy of obtaining further product orders by the end of 2016 as outlined in announcements previously made although the Board emphasises that additional purchase orders may not be forthcoming. Whilst no firm purchase orders have as yet been received from SC or otherwise and therefore the $5.2m of orders stated by SC in the agreement in January 2016 is now unlikely to be achieved, the Board is optimistic that with the £4.05 million of financing in place it should be able to finalise the indicative purchase order referred to above during 2016. This order, which is subject, inter alia, to manufacturing and a delivery date being agreed would, if finalised, have a value of £880,000 and would represent 20% of SC's total order commitment of $5.2 million for 2016. The issue of the proposed second tranche of £2.0 million in nominal value of Notes is conditional upon, inter alia, the Company obtaining sufficient authorities from Shareholders to disapply pre-emption rights such that the Company may issue the Conversion Shares (the 'Shareholder Approvals').Ī circular and notice of general meeting to propose, amongst other matters, appropriate resolutions to Shareholders, will be sent to Shareholders as soon as practicable.ĬloudTag is actively pursuing its strategy of obtaining product purchase orders by the end of 2016 and continues to work closely with its European distributor, Second Chance Limited, ('SC').ĬloudTag is pleased to report that it has recently received an indicative, non-binding purchase order from SC for the Company's first product (the Cloudtag Track). The net proceeds of the first tranche (including the escrow amount referred to below and net of expenses) is £2.08 million. It is expected that the first tranche of up to £2.5 million in nominal value of Notes will be issued to raise £2.25 million (before expenses) on or around 9 November 2016. Shares were up 29% at 5.82p in late afternoon trading.The issue of the Notes is subject to the terms and conditions as summarised below. "If the raw data that we bring is not accurate or relevant, then everything else is not correct, and the device will find its way to the back of the drawer," the CEO said. The CEO went on to extol the virtues of the device, particularly the accuracy of its monitoring, which he believes are "the key factors" in retaining users and remaining relevant to users. The initial sales focus is in the UK and Germany with plans for the US to follow in due course.īen-Haim told Stocktube presenter Charlotte Kan that the company is “closing the gap towards finalising the demands” of the retailers, and that everything is proceeding according to plan. Once concluded, the initial product delivery requirements will be fulfilled by Second Chance which, under the terms of its distribution agreement mean they must purchase a minimum US$5.2mln units by 31 December. "This will maximise the traffic on the web to support all the retailers and etailers," chief executive Amit Ben-Haim told Proactive Investors. Shares soared on the news, which was accompanied by a funding that raised £300,000 at 5.05p, a sizeable premium to the close yesterday.ĬloudTag’s monitors, which precisely measure heart rate and energy expenditure, are now being trialed by Amazon, John Lewis, Boots, Argos, Dixons, mobile network operator EE and European retail giant Media Markt among others.ĬloudTag added it is also in advanced discussions with Amazon to execute the sales and marketing strategy to support the product's release. Wearables group CloudTag Inc ( LON:CTAG) has started to roll-out its wrist-based health and fitness monitors through a raft of major online and retail outlets.
0 Comments
Leave a Reply. |