CloudTag (CTAG:LN), the company that brings personal monitoring to the health, wellbeing and fitness markets, has given DirectorsTalk an update for shareholders on the commercial developments with both high street and online retailers and has also said it has raised GBP300,400 by way of a subscription for new ordinary shares.
Commercial Update
Following completion of the sample and app demonstration, the Company, in conjunction with its European distributor, Second Chance Limited, is now concluding initial product delivery requirements with a number of high street and online retailers as follows:
-- the largest online electronic commerce and cloud computing company in the UK and USA; -- a major British multinational department store with large high street presence in the UK; -- the largest employee owned UK department store; -- the UK's largest high street pharmacy for online sales;
— Europe’s largest electrical and mobile telecoms retailer with significant presence in the UK;
-- the UK's largest mobile network operator and internet service provider; -- the two most popular catalogue retailers in the UK; -- one of Germany's largest department chains;
— a worldwide operating retail trust and contractor with business activity in over 20 countries; and
-- Europe's largest retailer for consumer electronics, with over 700 Stores in 14 countries.
Furthermore, the Company is in advance discussions with Amazon Marketing Services to execute the sales and marketing strategy to support the successful release of the product.
Once concluded, the initial product delivery requirements for the retailers detailed above will be fulfilled by Second Chance which, under the terms of its distribution agreement with the Company, are required to purchase a minimum value of units totalling US$5.2 million by 31 December 2016.
The initial sales focus is in the UK and Germany. A separate update announcement for the commercial developments in the USA will follow in due course.
Share subscription
In light of the intention to increase the personnel, the Company announces that it has raised GBP300,400 net of expenses through the issue of 5,951,803 new ordinary shares at an average price of approximately 5.05 pence per share (“Subscription Price”).
Issue of equity
In addition, the Company has issued 1,783,238 new ordinary shares at the Subscription Price in settlement of professional advisory and introduction fees to a third party. Further, the Company has issued 7,368,422 new ordinary shares in repayment of GBP175,000 loans to the Company, this is in line with the Company’s strategy to remove existing debt from its books.
Application will be made for the admission of a total of 15,103,463 new ordinary shares to trading on AIM and it is expected that dealings in the Shares will commence on or around 14 June 2016. The Shares will rank pari passu with the Company’s existing ordinary shares.
Following the issue of the Shares, the total number of ordinary shares in issue is 315,579,617. This number may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company.
