Commenting on the announcement, Amit Ben-Haim, CEO of CloudTag LON:CTAG said: “The UK, Europe and the US are the key target markets for the retailing of our first product. We are delighted to announce this agreement with one of the largest US retail service partners who are close to the tier-one retailers in the US and have an outstanding record in successful product commercialisation.”
Bob Griffin, CBO of CITIES Market Studios, said: “We are pleased to be on board with CloudTag, which has developed a truly unique product to target the wearables weight loss market. This is a new market segment for us and CloudTag’s offering complements the suite of products we have already helped to bring to the American consumer including those in the wearables market. We look forward to working with Amit and his team to deliver this new, quality product.”
CloudTag (CTAG:LN), the company that brings personal monitoring to the wellbeing, fitness and digital health markets, is pleased to announce that it has signed binding heads of terms with Griffin International Companies Inc. which is part of the CITIES Market Studios Group (“CITIES”), for the sale and marketing of CloudTag products in the USA and Canada. CITIES is one of the largest commercialisation and distribution players with over 30 years’ experience in North America.
CloudTag and CITIES will work together to effectively and diligently market and promote the sale of Cloudtag products to CITIES’ largest regular retail partners; Best Buy, Walmart, Target and Amazon both in store and online. These retailers are believed to comprise 4 of the top 5 retailers in the US consumer electronics industry accounting for circa. 70 per cent of the total market by sales. Working in collaboration with these 4 key retailers, CITIES have developed a sales forecast to January 2019 which expects that significant sales of CloudTag Track devices are realisable in the US.
Under the terms of the agreement, CITIES agrees not to market any brands which compete with CloudTag’s products in the wearable health fitness and weight loss market in exchange for CloudTag granting exclusivity to the retailers with which CITIES reaches agreements. CITIES will receive a sales commission for all products sold through its retail partners and CloudTag will pay CITIES marketing fees contingent on the successful delivery of sales to these targeted retailers. These binding heads of terms cover all material points of the agreement between CloudTag and Cities and are currently being drafted into a final form agreement. This agreement is for an initial period of 1 year from the date of signature of the final agreement and may be extended if agreed in writing by both parties.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
