Cloudtag Inc Regulatory News (CTAG)

21 November 2013

CloudTag Inc.("CloudTag" or the "Company")

Directorate Changes

Product Development Update

CloudTag (CTAG:LN), which develops personal performance monitoring for the professional sports and consumer wellbeing markets, is pleased to announce the appointment of Andy Jackson as Chief Executive Officer. Andy was initially appointed to the board of directors of CloudTag (the "Board") as Commercial Director to develop the Company's products and commercial opportunities. The Board has decided to accelerate Andy's appointment to Chief Executive in order to drive the Company's development programme and grow the operational management team.

The Company is also pleased to announce that it has appointed, with immediate effect, Gabriel (Gabe) Bodhi as an independent non-executive director. Mr. Bodhi studied Economics at the Wharton School of Business at the University of Pennsylvania, before completing an MBA from Stanford Graduate School of Business. He also holds the Chartered Financial Analyst Designation and is a member of the CFA institute and the Colorado CFA Society. Mr. Bodhi is a private investor with 15 years' experience investing in public equities across the financial and consumer segments. He has worked for a number of financial institutions in the US, including as President and Portfolio Manager at Stabilitas Capital and previously as a Senior Analyst and Sector Team Leader at Janus Capital.

Mark Butcher resigns as a non-executive director of the Company with immediate effect, in order to make way for Mr. Bodhi and to focus on his other business activities. The Board would like to thank Mark for his significant contribution to the Company during its early stages of development and wishes him well in his future endeavours. The Company will keep the composition of its Board under review and expects to make further appointments in due course.

Product Update

CloudTag is pleased to confirm that its product development since Admission has continued in line with the Board's expectations and the Company's initial products are on track for launch in H1 2014. The Company envisages launching the following products:

· The stand-alone user interface and mobile application, developed in collaboration with CloudTag's software partner, Preciousbluedot Ltd ("Preciousbluedot"). The appearance, experience and usability of these applications draw on the gaming expertise of the Preciousbluedot team led by Mark Betteridge and Lee Musgrave;

· The CloudTag Generation 1 monitoring device, targeting the wellness and weight loss markets and providing personal monitoring information to the user through both the accurate recording of data and the intuitive CloudTag mobile application; and

· The Generation 2 monitoring device, targeting the fitness, sports and performance markets and providing clinical-grade ECG and personal monitoring data alongside enhanced fitness-related content and personal performance advice.

The User Interface

The business model has evolved since Admission following sales discussions with major UK and US retailers, global fitness chains with a significant presence in the UK, USA and Canada and global health insurance companies with a significant presence in the UK and USA. The Company has identified an opportunity to bring forward the anticipated timing for initial revenue streams and therefore CloudTag has decided to accelerate the launch of the user interface as a stand-alone product.

In collaboration with Preciousbluedot, the Company is in the final stages of completing the optimisation of the user interface in advance of potential initial sales. It is intended that the mobile applications will provide access to the latest exercise programming from leading personal trainers, coaches, sportsmen and women, directly to the user's mobile device. 

Matt Roberts (Personal Trainer) has overseen the creation of a range of programmes using his extensive experience and proven training methods, which will be available directly within the user interface. CloudTag has completed the initial round of filming and production of content for the target weight loss, wellness and sports markets. The Company will shortly undertake the second round of filming and creation of further content.

The CloudTag Monitoring Devices

CloudTag has now completed the optimisation of the technical features of the devices, including the hardware, firmware and software interface as required for the various initial market opportunities identified. In collaboration with its technology partners, the Company is completing the development of field test models which will shortly undergo trials with professional fitness instructors.

Seymour Powell Ltd., CloudTag's creative design partner, has completed the concept design and concept development of the CloudTag monitoring device. The Company considered a number of concepts for the form factor of the device and, having chosen the form factor, has now reviewed further details on the size of the device, the materials, manufacturing processes, aesthetics and usage. CloudTag has identified a number of suitable manufacturers for the devices based on the final product design.

Sales and Marketing

CloudTag has had a significant number of discussions with major UK and US retailers, global fitness chains with a significant presence in the UK, USA and Canada and global health insurance companies with a significant presence in the UK and USA regarding sales and marketing of the CloudTag Products. The Company continues to develop its sales and marketing strategy as the market for wearable devices evolves. CloudTag has now completed the concept design work for the final packaging of the Generation 1 device. As part of this process, Seymour Powell has been advising on both the product and corporate branding.

The Company continues to monitor its costs carefully and evaluate its working capital requirements against the evolving business model and potential opportunities to commence CloudTag's sales. The Company continues to review the most appropriate form of financing required for its future activities, which may take the form of a combination of revenue, debt, equity and strategic partnerships.

Anthony Reeves, Chairman, comments:

"On behalf of the Board of Directors, I am delighted to announce the appointment of Andy Jackson as Chief Executive Officer. Andy has over 20 years experience in the health and fitness sector and has led the team which has been responsible for developing CloudTag since his appointment to the Board."

Andy Jackson, CEO, commented:

"Gabe brings significant experience to the Board of Directors and will assist CloudTag in developing a US presence, as this represents a significant market opportunity for the Company. I am pleased with the progression of the new mobile platform, the continued development of both generations of the CloudTag devices and the progress we have made towards our commercial launch. 

The Company is well positioned to take advantage of the gaps in the market identified by industry commentators including the lack of intuitive, engaging and integrated mobile apps, the inaccuracy of the majority of devices currently available and the lack of professional, high quality coaching.

As such, CloudTag's commercial opportunities in both the consumer and business-to-business markets continue to grow and the Company looks forward to updating the market as we achieve further commercial milestones."

The following information is provided pursuant to Schedule Two paragraph (g) of the AIM Rules.

Gabriel Autumn Bodhi (aged 39)

Enquiries

Notes to Editors

About Preciousbluedot

Preciousbluedot is a highly specialised and focused software development company, comprised of former employees and management of Rare Ltd. and Microsoft. Having developed the core software that powers Microsoft's Xbox Kinect physical interface and the Xbox Avatar system, they were also responsible for many of the best-selling Nintendo franchises in history including Goldeneye 007, Perfect Dark, Banjo-Kazooie and Donkey Kong Country. The Preciousbluedot team apply individual skills developed over 25 years in the gaming industry and are applying a novel approach to creating world-beating digital entertainment products for the mass market.