25th November 2016
CloudTag (CTAG:LN), the company that brings personal monitoring to the wellbeing, fitness and digital health markets, is pleased to announce that it has entered into an agreement (the “Agreement”) with Griffin International Companies Inc. which is part of the CITIES Market Studios Group (“CITIES”), for Cities to act as the Company’s sole and exclusive sales representative to sell all of the Company’s products to customers identified by CITIES. CITIES is believed to be one of the largest commercialisation and distribution players with over 30 years’ experience in North America. Either party may terminate the agreement upon written notice at any time. There is no guarantee that any sales will arise from the Agreement, in particular the Agreement is not subject to any minimum sales requirements with respect to any product or customer.
The Company previously announced on the 8 August 2016, that it had entered into binding heads of terms with CITIES and has now concluded a formal agreement.
CITIES has agreed not to act as sales agent for any product supplier that directly competes with the Company during the term of the Agreement except for any such supplier with whom CITIES has entered into an agreement to act as sales agent prior to the date of the Agreement.
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 orders to these targeted retailers.
The Agreement is for an initial period of 1 year from the date of the Agreement and is automatically renewed at the end of the term unless terminated by either party before the renewal date.
CloudTag and CITIES continue to work together to effectively and diligently market and promote the sale of Cloudtag products to CITIES’ retail customers which include 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 US total market by sales.
Commenting on the announcement, Amit Ben-Haim, CEO of CloudTag said: “Having spent the last four months working closely with CITIES developing our go-to-market strategy with our respective executive teams, I am confident we have secured an experienced retail services partner in CITIES, with an excellent track record and corporate synergy with CloudTag.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.