TIDMALT
RNS Number : 2923G
Altitude Group PLC
28 February 2018
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This announcement does not constitute a prospectus or offering
memorandum or an offer in respect of any securities of Altitude
Group plc or of any other entity and should not be considered as a
recommendation that any person should subscribe for or purchase any
such securities.
This announcement contains inside information for the purposes
of the market abuse regulation (EU No. 596/2014) ("MAR"). In
addition, market soundings (as defined in MAR) were taken in
respect of certain of the matters contained in this announcement,
with the result that certain persons became aware of such inside
information, as permitted by MAR. Upon the publication of this
announcement, this inside information is now considered to be in
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28 February 2018
ALTITUDE GROUP PLC
(the "Company" or "Altitude")
Placing to raise GBP1.5 million
AiMpro and andeverything.com Update
NAPCO Partnership Agreement
and
Notice of General Meeting
Altitude Group plc (AIM: ALT), the operator of a leading
marketplace for personalised products, is pleased to announce that
finnCap, as the Company's broker, have conducted a placing of
2,500,000 new Ordinary Shares in the Company to raise GBP1.5
million at a price of 60 pence per Ordinary Share. The Placing
Shares being issued in relation to the Placing represent
approximately 4.9 per cent. of the currently issued share capital
of the Company and the Placing Price represents a discount of
approximately 13.67 per cent. to the closing mid-market price of
69.5 pence on 27 February 2018, being the Last Practicable
Date.
Notice of General Meeting
The Placing is subject to approval of the Resolutions to grant
the Directors authorities to allot and to dis-apply pre-emption
rights in relation to the allotment and issue of the Placing Shares
at a General Meeting. The General Meeting has been convened for
10.00 a.m. on 16 March 2018 at the offices of finnCap, 60 New Broad
Street, London EC2M 1JJ.
A circular in relation to the proposed Placing, including the
Notice of General Meeting, will be posted to Shareholders later
today and will be available on the Company's website at
www.altitudeplc.com.
Admission
Completion of the Placing, settlement and Admission of the
Placing Shares to trading on AIM is expected to occur on 19 March
2018. Application will be made to the London Stock Exchange for the
Placing Shares to be admitted to trading on AIM and the Placing
Shares will rank pari passu in all respects with the Existing
Ordinary Shares, including the right to receive all dividends and
other distributions declared, made or paid on the Existing Ordinary
Shares on or after Admission. Following the issue of the Placing
Shares, the total number of issued Ordinary Shares in the Company
will be 53,345,192. This figure of 53,345,192 may be used by
Shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the share capital of the Company
under the FCA's Disclosure Guidance and Transparency Rules.
AiMpro Update
AiMpro is Altitude's first white labelled ChannlPro partnership
solution. ChannlPro combines Channl's e-commerce trading solutions
with Altitude's existing CRM and order management system, to allow
both online and offline transactions to be executed. It is provided
free of charge and exclusively to AiM members, as a benefit arising
from their membership of AiM. AiMpro is also actively endorsed and
promoted by AiM to its members.
Altitude can then potentially monetise revenue ("Gross
Transactional Revenue" or "GTR") from all purchase orders processed
on AiMpro from transaction fees levied on the suppliers of product
to AiM members. GTR generation is therefore dependent on AiM
members processing sales and purchase orders on AiMpro, and the
agreement of suppliers to the payment of transaction fees to
Altitude in respect of those purchase orders.
Further to the announcement made by the Company on 29 January
2018, a further 64 AiM members have been on-boarded to the AiMpro
platform bringing the total number of on-boarded members to 71. In
addition to this a further 37 AiM members are currently being
on-boarded with an additional 64 currently at the demo stage.
On-boarded status means that the AiM member has agreed to use the
AiMpro platform, and the Company anticipate that as a result the
AIM member will process its sales and purchase orders through it.
Altitude will encourage, monitor and manage AiMpro usage by
on-boarded members.
Of equivalent importance to the growth in on-boarded and
transacting members is the growth in the number of AiM preferred
suppliers who have agreed transaction fee terms with Altitude in
order for them to be included as a supplier on AiMpro. In total 28
of the top 50 AiM preferred suppliers have agreed terms for
inclusion on AiMpro and the Company anticipate the majority of the
approximately 200 preferred AiM suppliers to have agreed terms by
the end of 2018.
The AiM buying group currently comprises 1,579 members with an
aggregate revenue of approximately US$1.4bn of sales order
value.
As a simple illustration of the scale of GTR potentially
available to Altitude, based on the terms agreed with the AiM
preferred suppliers signed to date and on the assumption that, in
due course, 90 per cent. of existing AiM members are transacting
their purchase orders through AiMpro, then GTR on a sliding scale
between US$38 million (100% of transactions offline) and US$103
million (100% of transactions online) could be generated.
The speed of securing consistently transacting members and
on-boarded, transaction fee paying preferred AiM suppliers is
critical for Altitude to realise this potential.
NAPCO Media - second ChannlPro partnership
The Company announced today that it has signed a new two year
partnership agreement with the printing, packaging and publishing
division of NAPCO Media ("NAPCO"), a leading and large North
American digital media, marketing and publishing company. Under the
terms of the partnership agreement Altitude will provide a 'white
labelled' ChannlPro platform to NAPCO that will mirror the AiMpro
product.
The NAPCO partnership will provide Altitude with access to
approximately 80,000 commercial print businesses of which
approximately 12,500 are already active in the promotional product
market. The white labelled ChannlPro platform will provide these
businesses with easy access to the promotional product industry and
as they start to transact on the platform Altitude will generate
GTR based on the same revenue model that was used for AiMpro.
Altitude is now engaged in developing the white label ChannlPro
platform for NAPCO and, once it is launched, the NAPCO offering
will be able to leverage the same supplier database already
partnering with Altitude on AiMpro.
andeverything.com Update
As previously announced, Altitude soft launched
"andeverything.com" it's online aggregating market place for
personalised promotional products in the UK in December 2017. The
intention is for andeverything.com to be launched in the US during
2018 following the completion of further commercial development
work being undertaken to enhance and refine the offering based on
intelligence gained the soft launch in the UK. Once launched in the
US andeverything.com will be complementary to Altitude's ChannlPro
platforms and will be offered as a potential source of new business
to all platform members.
Revenue from andeverything.com will be derived from a 12%
commission payable by the distributor or ChannlPro member and will
be additive to the GTR received if the order is placed on a Channl
or ChannlPro supplier.
andeverything.com's internet presence will be supported by
search engine optimisation investment. Currently andeverything.com
is at minimum viable product ("MVP") status and the UK soft launch
is being used as a beta test to hone the user experience and design
to achieve a fully commercial product ahead of US launch in Q2 of
2018. Six weeks of test data in the UK have shown that the website
has received 2,889 homepage visits with 279 carts initiated and a
1% cart conversion rate There are currently 25 distributors listed
or being on-boarded to the platform listing over 1,000 products in
aggregate.
Proposed Use of Proceeds
The proceeds from the Placing will be used to:
-- Accelerate the roll out of AiMpro -by expanding the US and UK
workforce to increase on-boarding, monitoring and customer support
and service processing capacity of both members and suppliers.
-- Commence the roll out of the new ChannlPro solution to NAPCO-
complete the 'white label' customisation for NAPCO and then
commence the on-boarding, monitoring and customer support and
service of members and suppliers throughout 2018.
-- Continue the commercial development of andeverything.com.
Peter Hallett, Executive Chairman, commented: "We are excited
and encouraged by the reaction of the AiM membership and their
preferred suppliers to our AiMpro solution, and by the agreement
reached with NAPCO to provide a similar platform for the adjacent
market of circa 80,000 commercial printer businesses, approximately
13,000 of whom already provide promotional products. The Board
believe it is now timely to raise additional resource to capitalise
on these partnerships and accelerate the monetisation of our US
patented ChannlPro technology. ".
Defined terms used in this announcement will have the same
meaning (unless the context otherwise requires) as set out in this
announcement and in the Circular posted to shareholders today which
is available on the Company's website at www.altitudeplc.com.
Enquiries:
Altitude Group plc
Peter Hallett, Executive
Chairman 07887 987469
finnCap ltd 020 7220 0500
Jonny Franklin-Adams (Corporate
Finance)
Scott Mathieson (Corporate
Finance)
Richard Chambers (Corporate
broking)
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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