11 Feb 2014 07:00
Fitbug Holdings Plc / Epic: FITB.L / Index: AIM / Sector: Leisure
11 February 2014
Fitbug Holdings Plc ('Fitbug' or 'the Company')
Very strong market response to launch of Fitbug KiK plan coaching programmes at CES
Secures £1,000,000 Loan on Attractive Terms
Fitbug Holdings Plc, the AIM listed provider of online personal health and well-being services, is pleased to announce that its Fitbug KiK coaching plans have received a very strong market response following its official launch at the 2014 Consumer Electronics Show ('CES') held in Las Vegas in January 2014. Additionally, the Company reports that it has signed a £1 million loan agreement ('the Loan') with NW1 Investments Limited ('Loan Holder').
Wearable devices, or "wearables" were widely recognised as the fastest growing product category at CES 2014, with the Financial Times reporting that "Wearables emerge as top CES trend" on 6 January 2014. In line with this, Fitbug announced the "next step" in the digital health ecosystem, unveiling KiKplanTM, an advanced personalised coaching aid designed to work with activity trackers to meet specific health, weight and fitness goals. Media and market reaction has been very positive following the launch, with the Huffington Post singling out Fitbug as one of five companies "Changing the game in 2014" (please see http://huff.to/1dtsolx). Additionally, in its January Wireless and Cloud Computing Update, JMP Securities included Fitbug in "The JMP Securities Fit 50: The Hottest mHealth and mFitness players from the ranks of private or lesser known technology companies."
In response to the very strong retail interest in wearables at CES, Fitbug is now putting retail distribution arrangements in place in the US, UK, Europe, Middle East, Asia and Australia.
Fitbug Executive Chairman Fergus Kee said, "It is clear that 2014 will see the relevance of wearable devices move from niche applications into much more mainstream products and markets. The mHealth and mFitness industries are now poised for strong growth and we believe that Fitbug is well placed to share in that growth."
To support planned growth in 2014 the Company has signed a £1 million loan agreement with NW1 Investments Limited. The Loan is repayable by 31 July 2014 and will accrue interest at a rate of 5% per annum, payable on a quarterly basis. If during the term of the Loan Fitbug undertakes an equity issue, the Loan Holder can elect to convert some or the entire Loan into new ordinary shares in Fitbug. NW1 Investments Limited is a company in which the family of David Turner and Allan Fisher, both directors of Fitbug, have a material interest.
The independent directors of the Company, being Fergus Kee, Paul Landau, Andrew Brummer and Geoffrey Simmonds, consider, having consulted with Cantor Fitzgerald Europe, that the terms of the Loan are fair and reasonable in so far as the shareholders are concerned.
**ENDS**
For further information contact:
Paul Landau/Andrew Brummer | Fitbug Holdings Plc | 020 7449 1000 |
Mark Percy/Catherine Leftley/Katie Ratner | Cantor Fitzgerald Europe | 020 7894 7000 |
Claire Louise Noyce / William Lynne | Hybridan LLP | 020 7947 4350 / 020 7947 4361 |
Elisabeth Cowell/Charlotte Heap | St Brides Media & Finance Ltd | 020 7236 1177 |
Notes
Fitbug is a leading provider of online health and well-being services to help individuals to improve their lifestyles by making realistic changes to their daily routine. It combines activity tracking devices, which download to fitbug.com to provide an understanding of each user's daily activity achievements, with web technology which provides users with personalised weekly activity and nutrition targets, feedback, advice and encouragement.
Key market sectors include health insurance and rewards providers, workplace health programmes, Primary Care Trusts, fitness operators and consumers. Increasingly, Fitbug's platform acts as the driving force behind third party services such as white label sites, activity driven games and challenge microsites and rewards programmes. The Company's main focus is now on building strategic partnerships with organisations that can integrate Fitbug into their own service/product offerings or resell to their customer base. The Company has operations in Australia and Asia, with the United States remaining the primary market. For more information, visit www.fitbug.com.
The Fitbug business was founded by Paul Landau, CEO of Fitbug Limited. Fergus Kee, Executive Chairman of the Company is the former Managing Director of Bupa's £2.1 billion turnover UK and North American Division.