2 Sep 2021 07:00
InnovaDerma PLC
("InnovaDerma" or the "Company")
Strategic Partnerships, Marketing Update, Board Change and Grant of Options
InnovaDerma (LSE: IDP), a leading digitally focused UK beauty brand developer, is very pleased to announce a number of key strategic initiatives that will help transform the Company into a fast growing, profitable enterprise.
Strategic Partnership: Amazon
InnovaDerma is now selling its two core brands, Skinny Tan and Charles + Lee directly to consumers via Amazon both in the UK and USA. This is an exciting and important step in the Company's e-commerce led strategy enabling us to service the on-line shopper wherever they are most comfortable shopping. Moreover, in the US, this new channel will offer a much more cost-effective shipping model as we are able to leverage the Amazon distribution network whilst maintaining healthy gross margins.
Historically, a limited range of InnovaDerma's products have been sold on Amazon via 3rd parties. This has often negatively impacted our DTC margins and by putting in place a direct relationship with Amazon we will be able to maximise our revenues while also improving upon margins.
We expect the relationship with Amazon to become increasingly important to InnovaDerma over the coming years and should be of significant benefit as we enter new geographic markets.
Strategic Partnership: Neon Management
The Company is also pleased to announce that it has agreed a strategic partnership deal with Neon Management Limited ("Neon"). Neon is the UK's leading talent and PR management company and represents many of the UK's best known and most loved reality stars and influencers, and these range from popular television celebrities through to contestants that have appeared on Love Island, I'm a Celebrity and The Only Way Is Essex.
InnovaDerma will work with Neon Management to ensure its products are promoted by influencers and celebrities with millions of followers who can introduce our products to a new and younger demographic.
Dave Read, Neon CEO, commented "We are incredibly excited to be working alongside InnovaDerma and helping them introduce new consumers to their portfolio of products. We believe that there is a fantastic synergy between the amazing beauty products that InnovaDerma creates and the artists that we represent."
Blake Hughes, Innovaderma CEO, commented "This partnership is an important step in diversifying away from our legacy advertising providers, it not only introduces us to an important and younger consumer demographic but should also help us improve our return on advertising spend."
Strategic Portfolio Updates
The Company's core brands, Skinny Tan and Charles + Lee, have both undergone a packaging refresh, with the first refreshed products already in available in the UK. We refreshed the brands to make them more attractive to consumers on-line and in-store, the new packaging includes upgraded and enhanced aesthetics, improved ease-of-navigation across the product range and an improved sustainability profile. Initial feedback from both consumers and retailers has been very positive
The Company has now completed its review of the Company's brand portfolio and has determined that the Prolong brand has limited synergies with the topical portfolio, particularly given the different regulatory requirements. We are in early discussions with a joint-venture partner who has the skills, experience and capital required to grow the brand into a sizeable venture. Our three-to-five-year strategy is to realise significant shareholder value through either an IPO, Private Equity or Trade Sale.
The Company has concluded that Grow Lase has no ongoing value and thus will be discontinued at minimal cost.
Board Change
InnovaDerma Plc is pleased to announce the appointment of Andrew Dunderdale to the Board with immediate effect as Group Financial Director. Andrew joined the Group in February 2021 and since joining has been instrumental in improving and strengthening the financial management and operational controls of the business, he has also played a significant role in reducing our cost base to an appropriate level and thereby improving future margins and profitability.
Blake Hughes, CEO of InnovaDerma said: "Our objective is clear and that is to deliver sustainable, profitable growth by being e-commerce led, core brand focused and digital marketing expert. Our strategic partnerships with Amazon and Neon are important parts of our strategy to strengthen profitability and ensure we efficiently maximise our exposure to relevant customer demographics.
"The Company is making good progress against its transformation plan and I believe that we have the right strategy and team in place to set the business up for a stronger, more sustainable future."
Ross Andrews, Non-Exec Chairman, added: "The last few months have been transformational for InnovaDerma, and the team has spent significant time resolving some of the fundamental issues that had built up in the business over previous years.
"I am very pleased that our attention can now be focussed on growing the business, providing our consumers with fantastic products and generating significant returns for our shareholders.
"Blake, Andrew and the rest of the team are doing an excellent job in turning the business around and I am confident in our future success."
Share Options
The Board has approved the grant of options over 125,000 Ordinary shares to Blake Hughes and 95,500 Ordinary shares to Andrew Dunderdale. Both grants have an exercise price of £0.35 (being equal to the April 2021 fund raising) and will be exercisable on or after the third anniversary of the grant date subject to the share price performance of the Company (see further below) and the conditions defined in the share option plan.
One third of the options may be exercised when the market price of the Ordinary Shares is equal to at least 25% increase over the grant price for a period of not less than one month; one third when the market price of the Ordinary Shares is equal to at least 50% increase over grant the grant price for a period of not less than one month; and the balance may be exercised when the market price of the Ordinary Shares is equal to at least 75% increase over the grant price (for a period of not less than one month.
Following today's grant, the Company has 320,820 options in issue, representing 1.17% of the Company's issued share capital.
Name | Position | Grant of Options | Options held post grant | Ordinary Shares currently held |
Blake Hughes | CEO | 125,000 | 125,000 | 128,571 |
Andrew Dunderdale | Group Finance Director | 95,500 | 95,500 | 24,936 |
Further enquiries
InnovaDerma Blake Hughes |
c/o TB Cardew |
finncap Ltd Geoff Nash/Kate Bannatyne Alice Lane - Corporate Broking |
+44 (0)207 220 0500 www.finncap.com |
TB Cardew | |
Shan Shan Willenbrock/ | + 44 (0)7775 848537 |
Olivia Rosser | + 44 (0)7552 864250 |
innovaDerma@tbcardew.com |
Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.
1 | Details of the person discharging managerial responsibilities/person closely associated | |||||||||
a) | Name | Blake Hughes | ||||||||
2 | Reason for the notification | |||||||||
a) | Position/status | CEO | ||||||||
b) | Initial notification/Amendment | Initial notification | ||||||||
3 | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||||||
a) | Name | InnovaDerma PLC | ||||||||
b) | LEI | 213800WRAP6W8VDL6B38 | ||||||||
4 | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||||||
a) | Description of the financial instrument, type of instrument
Identification code | €0.10 each ordinary share IDP GB00BT9PTW34
| ||||||||
b) | Nature of the transaction | Grant of Options under the InnovaDerma PLC Share Option Plan | ||||||||
c) | Price(s) and volume(s) |
| ||||||||
d) | Aggregated information
| 125,000 ordinary shares of €0.10 per ordinary share par value exercisable on or after the third anniversary of the grant date subject to the share price performance of the Company | ||||||||
e) | Date of the transaction | 01 September 2021 | ||||||||
f) | Place of the transaction | Outside a trading venue | ||||||||
1 | Details of the person discharging managerial responsibilities/person closely associated | |||||||||
a) | Name | Andrew Dunderdale | ||||||||
2 | Reason for the notification | |||||||||
a) | Position/status | Group Financial Director | ||||||||
b) | Initial notification/Amendment | Initial notification | ||||||||
3 | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||||||
a) | Name | InnovaDerma PLC | ||||||||
b) | LEI | 213800WRAP6W8VDL6B38 | ||||||||
4 | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||||||
a) | Description of the financial instrument, type of instrument
Identification code | €0.10 each ordinary share IDP GB00BT9PTW34
| ||||||||
b) | Nature of the transaction | Grant of Options under the InnovaDerma PLC Share Option Plan | ||||||||
c) | Price(s) and volume(s) |
| ||||||||
d) | Aggregated information
| 95,500 ordinary shares of €0.10 per ordinary share par value exercisable on or after the third anniversary of the grant date subject to the share price performance of the Company | ||||||||
e) | Date of the transaction | 01 September 2021 | ||||||||
f) | Place of the transaction | Outside a trading venue | ||||||||