Cloudtag Inc Share News (CTAG)

(ShareCast News) - Personal monitoring technology company CloudTag announced on Monday that it has signed binding heads of terms with Griffin International Companies - part of the CITIES Market Studios Group - for the sale and marketing of CloudTag products in the US and Canada.The AIM-traded firm said CITIES is one of the largest commercialisation and distribution players with over 30 years of experience in North America.CloudTag and CITIES plan to work together to market and promote the sale of CloudTag products to CITIES' largest regular retail partners, which include Best Buy, Walmart, Target and Amazon both in store and online.CloudTag's board said these retailers are believed to comprise four of the top five retailers in the US consumer electronics industry accounting for around 70% of the total market by sales."Working in collaboration with these four key retailers, CITIES has developed a sales forecast to January 2019 which expects that significant sales of CloudTag Track devices are realisable in the US," CloudTag's board said in a statement.Under the terms of the agreement, CITIES has agreed 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.The binding heads of terms cover all material points of the agreement between CloudTag and CITIES, the statement said, and the agreement is currently being drafted into a final form agreement.CloudTag's board said this agreement is for an initial period of one year from the date of signature of the final agreement and may be extended if agreed in writing by both parties."The UK, Europe and the US are the key target markets for the retailing of our first product," said CloudTag CEO Amit Ben-Haim."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 his company is pleased to be on board with CloudTag, with its 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," Griffin added.