Mirriad Advertising Regulatory News (MIRI)

Mirriad TRADING UPDATE

5 July 2019

("Mirriad" or the "Group")

Improved revenues follow positive engagement and the announcement of a new client contract

Mirriad Advertising plc ('Mirriad'), the established computer vision and AI platform company is updating the market on current trading.

The Directors are encouraged by recent developments in Mirriad's underlying business and performance. Mirriad recently announced a new two-year contract with Tencent Video, one of China's largest digital entertainment platforms. The contract provides minimum fixed monthly revenues to the Mirriad.

Management continues to make good progress in increasing engagement with senior stakeholders at advertising clients, agency groups and broadcasters/distributors, a direct measure of the implementation of the new market strategy.

Mirriad anticipates that its new contract with Tencent, taken together with other recent activity, will result in 2019 revenue exceeding that recorded in 2017. It will also be substantially greater than revenues in 2018. Mirriad now expects minimum revenues of £1.1 million in 2019 and £2.2 million in 2020 based on existing customer contracts and before the impact of any incremental revenue arising from ongoing commercial discussions.

At the end of May Mirriad had cash resources of £10.2 million, with monthly cash consumption continuing to run at around £1 million per month. The Mirriad has also announced this morning that it has raised a further £14.18 million through a placing, conditional on shareholder approval at a general meeting to be held on 31 July 2019. The proceeds of the placing will be used for general working capital purposes and to provide the Group with sufficient funds to demonstrate the efficacy of its new go-to-market strategy and revenue traction with partners in its key markets.

Stephan Beringer, CEO of Mirriad, said: "There is now a real sense of momentum surrounding the new strategy we are implementing at Mirriad. The Tencent contract is a very important milestone and proof of the work we are undertaking to get our Academy Award-winning technology to transform the way advertisers can engage with their target audiences.

"We are still relatively early on in our strategic reset, however, we look forward to delivering additional value for our shareholders by sustainably growing the business."