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CloudTag in the dark over recent share price strength

Published: 11:24 31 May 2016 BST

Waist. The weight-loss market is the biggest in the whole wearable tech space
CloudTag is the first wearable device to focus its offering clearly on the weight-loss market

CloudTag Inc (LON:CTAG), the personal health and fitness monitoring specialist, knows of no reason for the recent sharp rise in the company’s share price.

The shares are up 129% over the last month, 82% over the last week and 3.3% this morning. CloudTag continues to actively progress its business strategy of commercialising its proprietary intellectual property and technology, and will update shareholders as and when significant developments occur.

Earlier this month the wearable tech company raised money by issuing – not for the first time – shares placed with investors at a premium. The May share issue was performed at 3.1p a share, at the time a 37.8% premium on the previous day’s mid-market close of 2.25p, but some way south of the current share price of around 4.6p.

The funds raised will provide extra working capital as the company prepares to get its first product set, CloudTag Track and the beatSMART Clip, into shops before the end of the year.

CloudTag Track was unveiled at the Consumer Electronics Show, Las Vegas, in January 2016.

The company is aware that the wearable technology field is becoming a crowded one, and believes the secret to success depends on product differentiation and customer satisfaction.

CloudTag is the first wearable device to focus its offering clearly on the weight-loss market, which is arguably the largest niche market within wearables.

CloudTag said the device offers consumers access for the first time to a wearable that allows them to set a weight loss goal and target date, with the whole system then building a personalised plan to achieve their goals, during which the "machine learning" aspects built into the system finds out more about the user and makes constant adjustments to help keep them on track.

The core focus on consumer markets is via a distributor model, initially in the UK, Germany and the rest of Europe (with other EU territories to follow), but the company has its eyes on the massive United States market further down the road.

Its sales to business-to-business markets will initially be focused on health insurers, mobile telecommunications and corporate wellness programmes.

CloudTag Inc raises £580,000 to fund growth

Personal fitness monitoring device maker Cloudtag Inc (LON:CTAG) has raised £580,000 to help it bankroll rapid business growth. Cloudtag has generated the cash by issuing 10mln shares at a price of 5.8p per share, representing a premium of 5.45% to Tuesday's mid-market closing...

on 10/8/16