Cloudtag Inc (LON:CTAG) Chief Executive Officer Amit Ben-Haim caught up with DirectorsTalk for an exclusive interview to discuss the initial feedback following the successful product launch at CES, manufacturing and commercialisation of the product and the £1.25 million fund facility
Q1: You’re just back from CES Amit where I believe you had a successful launch, what was the initial feedback?
A1: The reception at CES was overwhelming, positive both regarding the product design and the personalised system that Cloudtag Track offers which has been evident in the numerous write ups we have had thus far. As well the pre-organised meetings with the top US department stores, US/EU distributors, obviously number one EU sport outlet store with headquarters in France and others, not to mention the footfall we had experienced at the stand during the show. Obviously now, post CES, we are turning all of our attention to closing the commercial opportunities that we expect will lead to further orders in due course.
Q2: What progress has been made with regards to product commercialisation?
A2: Launching at CES has done is enabled the company to progress existing commercial relationships with potential customers and also for giving us the platform to create new opportunities for commercialisation as mentioned before. Cloudtag’s main focus is to convert these advanced discussions into sales orders.
Q3: What are the next steps then in terms of product manufacture?
A3: I think we advised the market before that the production tooling has been set up and the production run of devices for the product launch were received by the company in November 2015, the products of which were displayed at CES. The company is now focussed, amongst the commercial activity, on increasing the Far East production facility with commercial quantities of devices to be ready in Q2 of 2016.
Q4: Now we noted that you’ve also filed for some patents in relation to the product, what can you tell me about those?
A4: Yes, on 24th December 2015, the company filed a number of UK patent applications covering the proprietary in-house design sensors, signal processing algorithms, sensor utilising natural and manmade materials, innovative mechanical body attachments and the product system architecture. With respect to the innovative design of the product, we also filed a design registration and design patents application in the UK and the USA respectively, which were filed in the first days of January 2016.
Q5: Ok, an additional fund facility has been signed as per the recent RNS, what does this mean for Cloudtag?
A5: This is correct, we have signed a £1.25 million unsecured loan facility with a private equity company. Funds drawn down from the facility will be used for purchase order funding with manufacturers and B2B partnership in 2016 and for obviously general working capital purposes.
Q6: What else is Cloudtag Inc focussed on in the near future?
A6: Well Giles, as I mentioned, our key focus will be on the manufacturing and commercialisation of the product. Furthermore, B2B opportunities with insurance providers and mobile phone operators have been generated at CEO level and we will continue to build relationships with relevant companies. I’m confident that several of these opportunities will lead to commercial arrangements and look forward to updating the market in due course, as discussions progress further.
