16th June 2016
CloudTag (CTAG: LN), the company that brings personal monitoring to the health, wellbeing and fitness markets, is pleased to announce an operational update and to announce it has raised £470,000 by way of a subscription for new ordinary shares.
Further to the Commercial Update made by the Company on 9th June 2016, announcing the progress made with our European distribution partner and various high street and online retailers, CloudTag is also currently in the process of recruiting 3 senior executives to drive sales to consumer markets in the UK and Europe and facilitate delivery of the Company’s first product – the CloudTag Track.
These executives will have direct and current experience in the wearable technology and consumer electronics industries and proven track records. Specifically, these roles include both a UK & Ireland Sales Director and a European Sales Director who will be tasked with delivering products to market and subsequently driving sales. The Company is also recruiting a Business Development Director who will be tasked with driving and delivering the B2C and B2B strategy as outlined by the Company’s CEO, Amit Ben-Haim in the Company’s Final Results statement of March 2016.
Additionally, the Company continues to focus its R&D efforts on creating new and unique technologies to maintain CloudTag’s differentiation in the fast moving marketplace. In order to facilitate these efforts, the Company is in the process of strengthening its team by hiring specialists in embedded systems electronics, mechanical engineering, and product and industrial design. The Company is also seeking to recruit user experience market specialists, mathematicians and “big data” scientists as well as additional manufacturing engineers and quality assurance specialists who will work closely with the international quality assurance agency which we are currently in the process of engaging.
Meanwhile, in the lead up to full commercial release of the product in the UK and Europe, CloudTag is in the process of moving manufacturing from its current low volume production partner in Taiwan, which was suitable for production of rapid, low-cost test batches; to new production partners also based in the Far East with mass production capabilities and which hold the following ISOs: 13485, 14000 and 9000.
The board will carefully monitor the Company’s working capital position in light of its plans to accelerate the business outlined in this announcement. The Company has been successful in raising additional working capital in recent months and we are pleased to announce a further fundraising. The Board will retain a flexible approach to implementing its plans to ensure that sufficient working capital is available at all times.
Subscription for £470,000
Additionally, the Company announces that it has raised £470,000 net of expenses through the issue of 7,768,596 new ordinary shares at price of 6.05 pence per share (“Shares”).
Application will be made for the admission of 7,768,596 new ordinary shares to trading on AIM and it is expected that dealings in the Shares will commence on or around 21 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 323,348,213. 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.