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CloudTag given boost as it waits for CES orders to roll in

CloudTag Track is the only device on the market to give a full ECG, which then makes it possible to accurately calculate energy expenditure.
CloudTag given boost as it waits for CES orders to roll in
Feel the burn: The device can be used for fitness and weight loss.

Wearable technology specialist CloudTag (LON:CTAG) has received heartening evidence of backing for its technology following its successful debut at the CES ‘geekfest’ in Las Vegas.

In January, it secured a £1.25mln loan facility from private equity firm Hector Limited that offers the option to convert any amounts drawn down into shares at 2.25p. The loan carries a coupon of 10% and is subject to a 3.7% administration fee.

In early March it achieved the unusual feat of issuing shares at a premium, raising £215,000 through a subscription offer at 1.84p a pop, versus a closing price of 1.725p on the day before the fund-raising announcement.

The cash provides some financial flexibility as it waits from business to flow in from CES, where it launched the CloudTag Track.

CloudTag Track uses grade ECG (Electrocardiography) technology, allowing for accurate assessments of heart rate and energy expenditure. It can be worn on the wrist for daily tracking and on the chest during exercise. A one hour charge gives it life for three to five days.

Good for fitness fanatics, its use can be extended into the weight loss arena where accurate calorie readings are required.

At CES, CloudTag said it spoke to some of the world's largest consumer technology manufacturers, one of Europe's leading sporting goods distributors and two of North America's largest department stores and retail groups. 

It also said it generated business-to-business opportunities with insurance providers and mobile phone operators.

“The directors of CloudTag are confident that several of these opportunities will lead to commercial arrangements and look forward to updating the market in due course as discussions progress further,” the company said in a stock market statement.

“We’re looking to supply the market by end of May, 2016,"  chief executive Amit Ben-Haim told Proactive last week from CES.

The focus is now on getting the production of CloudTag Track and the beatSMART clip to commercial quantities by the second quarter, as the chief exec explains in the video below.

 

A series of patent applications have been made in the UK to protect the intellectual property, while product validation came via research carried out by the sports performance unit at the University of Essex.

Boss Ben-Haim said: "I am delighted with the very rapid progress made by the team over the past few months ensuring the delivery of our first product to its launch at CES in Las Vegas. 

“The reception at CES was overwhelmingly positive and we are now turning all our attention to closing the commercial opportunities that we expect will lead to firm orders in due course."

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CloudTag Inc Timeline

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January 17 2017

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