Whilst no firm purchase orders have as yet been received from SC or otherwise and therefore the $5.2m of orders stated by SC in the agreement in January 2016 is now unlikely to be achieved, the Board is optimistic that with the £4.05 million of financing in place it should be able to finalise the indicative purchase order referred to above during 2016. This order, which is subject, inter alia, to manufacturing and a delivery date being agreed would, if finalised, have a value of £880,000 and would represent 20% of SC's total order commitment of $5.2 million for 2016. The issue of the proposed second tranche of £2.0 million in nominal value of Notes is conditional upon, inter alia, the Company obtaining sufficient authorities from Shareholders to disapply pre-emption rights such that the Company may issue the Conversion Shares (the 'Shareholder Approvals').Ī circular and notice of general meeting to propose, amongst other matters, appropriate resolutions to Shareholders, will be sent to Shareholders as soon as practicable.ĬloudTag is actively pursuing its strategy of obtaining product purchase orders by the end of 2016 and continues to work closely with its European distributor, Second Chance Limited, ('SC').ĬloudTag is pleased to report that it has recently received an indicative, non-binding purchase order from SC for the Company's first product (the Cloudtag Track). The net proceeds of the first tranche (including the escrow amount referred to below and net of expenses) is £2.08 million. It is expected that the first tranche of up to £2.5 million in nominal value of Notes will be issued to raise £2.25 million (before expenses) on or around 9 November 2016.

The issue of the Notes is subject to the terms and conditions as summarised below. If the Notes are converted into new ordinary shares in the Company ('Conversion Shares'), the Company will also issue the Investor with one warrant ('Warrant') for each Conversion Share, details of which are set out below. The Notes have an aggregate nominal value of up to £4.5 million and will be issued at a 10% discount to nominal value in up to two tranches. The Company has agreed to issue senior unsecured zero coupon convertible notes with a term of 12 months ('Notes'), to raise up to £4.05 million (before expenses), to an overseas Institutional Investor ('Investor'). The Company also provides a European sales update.

Fundraising of up to £4.05 million and European sales updateĬloudTag (CTAG:LN), the company that brings personal monitoring to the wellbeing, fitness and digital health markets, is pleased to announce that it has secured up to £4.05 million (before expenses) of additional funding.

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