Justin: CEO of CloudTag, CTAG, thank you for joining me
Amit Ben-Haim: Good afternoon Justin, for me it is a good morning and it is almost month since our last call.
Justin: Yes this is a bit of an international call because you are in Minneapolis now at the moment, are you?
Amit Ben-Haim: Yes indeed i just landed after being in New York spending a few hours yesterday in meetings and I have arrived in Minneapolis this morning. Six of my team already arrived yesterday to Minneapolis and they are working for the next two days with the cities team to make sure that all the T’s are crossed and the I’s are dotted from all aspects including branding, marketing, market sector positioning, merchandising and logistics to name a few of the topics that will take us into the market soon.
Justin: Cool. Well listen before we get onto that I’ve got to say the recent RNS about the appointment of your Chief Business Development Officer is the most popular on the web site on Vox Markets in the last seven days, we will get to that in a bit, but for people, there are some people maybe who are not aware of what CloudTag does, so can you explain what you are all about Amit.
Amit Ben-Haim: So, we at CloudTag are a digital platform , it is an IoT company. We come up with sensors and we are measuring certain body outputs. At this stage we are measuring heart rates with electrodes and we have decided that the future for us is to lock onto a sector rather than to be one device for everybody and we are now currently mastering the weight loss sector which is the largest actually within the wellness and the most talked about because a lot of governments and private insurance companies are sweating paying out for people who are overweight and moving into chronic diseases such as type 2, cardiovascular diseases, not to mention even amputation unfortunately.
Justin: Okay, alright, we have got some questions from private investors, we will do that in a bit. First and foremost can you take us through the appointment of Chief Business Development Officer and his background and how that came about then.
Amit Ben-Haim: Sure. So obviously you know since we had spoken last time a great deal has been achieved around France, one of them obviously was the inclusion of Bhav, the Sales Director who came from Jawbone and as you can imagine he is fresh from the direct, all the contacts, all of the knowledge of the players in the market in Europe and especially in the UK, and then to Yuval, the Chief Business Development Officer who started yesterday actually and his first day at office was actually flying from London to Minneapolis. You know, as I mentioned in the previous RNS’ and the podcast last time I am recruiting, I am continuing to recruit, I am bringing more people who are obviously bringing along with them new and varied skill sets and market knowledge, assisting me in accelerating our market entry and marking the new opportunities for us, especially about Yuval and again this is my trend, very analytical beyond the idea is computer science engineer, beyond the idea that he is an MBA from INSEAD and then actually smartly enough he has gone and chosen to do it in Singapore so actually he saw more of the world. His market approach you know works for Bluechip company BT sports, he was actually the first guy who launched the VT sport programme into the UK, so B2B was very much his part. Growing the business opportunity and then later on moving to one of the largest internet network provider, so Google, Microsoft, Yahoo, all of them are their clients and again there he was responsible for very large projects, you know analysing the costs, analysing the returns and deploying quite a lot of capital. So Yuval came across me and I didn’t hesitate in offering him a job and I think he will be great guy in the business now, obviously one of his chief responsibilities is the B2B business opportunities including the medical health care insurance companies and hence I decided also to bring him to Minneapolis.
Justin: Yeah, yeah, well I tell you what you seem to be building a team of experts and experienced guys there around you which is quite good. You must be quite pleased at the moment with how the share price is reacting.
Amit Ben-Haim: Ah well, never react to share price because that’s what the market decides but it is almost pleasing to see a blue colour.
Justin: Yeah, yeah, well do you know what, you have a phenomenal amount of, you know loyal investors there. I mean the experience is via Vox and via social media. We have had a lot of questions omitted. Last time we did 25 minutes worth of questions so there are less questions this time but I think they are very pertinent so let’s go into them. The first one is can you see CloudTag collaborating with any other big names in the tech world after all these years of research and having the most accurate tech, people must now be approaching you.
Amit Ben-Haim: Well I think this is a fair and good question which I will try and answer within the ambits of it being a listed company and you will appreciate the sensitivity here. So, I can see a move within all of these companies be it Intel, Qualcomm, IBM and others towards data gathering and data analytics, whilst I think the current trend with all of them is digital healthcare, where we are. So on the whole if you look at the market and the shape of it these companies would rather have people like us coming up with these sensors, data, acquisition at source, where they will you know add their CloudTag analytics using our own data, and deliver them to different stakeholders in the marketplace, but you know, as you can appreciate if the raw data is not accurate then all you do with the analytic powers is actually expand the errors. So talking about us being the most accurate medical grade device, I am of the opinion that CloudTag can serve the needs on going forward especially that we are focusing the weight loss sector which is high on the agenda of many medical insurance bodies, be it governments or private. So, the trend forward, what I see is that companies will consolidate within their operation the downstream, people like ourselves, providers such as a CloudTag, so to gain market share as data really is the value, and summarising back again to one of your first questions, who are we. So you know , our base is the digital health IoT platform company so adding more sensor is the way I see our progression, and indeed they are, you know, the powers going forward with their analytics and data sharing.
Justin: Yeah, I see that is obviously one of the biggest selling points there because a lot of people mention that CloudTag is most the accurate on the market. I mean, has this sort of been verified in any way, are you building your case on the accuracy of the products, is that the case?
Amit Ben-Haim: Yes indeed, and I think that is the bigger differentiator, you know because at the end of the day if you cannot have raw accurate data, whatever you are going to tell the user is obviously going to be again not accurate, not relevant, not meaningful to what they want, and yes we had tests last year with the Essex University Sports and Science, later on we are moving to Loughborough University which is the home of Team GB, there are some tests that are going to happen in the United States in other facilities, and all of those tests as we are listed company we are publishing them on the website and people can see the numbers for themselves, but yes indeed we are the most accurate.
Justin: Yes. All right, next question. Fitbit spent 21 million dollars in 2014 on the marketing budget. Where is CloudTag going to find the money to compete on this level and persuade customers that its product is different?
Amit Ben-Haim: So two levels and I’ll see if I can answer it. First, we are not competing with Fitbit and the others in the marketplace. We have created our own sector, namely the weight loss, I mean to date there is no one within weight loss which is actually a device and service. There are plenty people telling you, you can buy an app and lose weight, you can go to Weight Watchers for example, you can eat Special K as much as you want but there is no one their holding your hand and going into that market with a device and service, so we have created this kind of extra and you know, this is the reason why for example best buy, target, Argos, M&S, to mention a few will grasp this point from day one talking to us and hence we are not cannibalising on their current sales but rather adding to their sales and floor space, giving them a product that end users need, and you know, this is again another direction that I am enshrining in this company, throughout all of my companies. We are in the business of responding to peoples’ needs rather than creating a need and I think this is very a sustainable business model here, and by the way you know when Fitbit entered the market in 2010/2011 their sales were around the 2 million mark and I believe they did not have the fire power you know, you have mentioned. However talking about the second element we have the needed cash to support our product market entry and more to come, allowing me to accelerate entries on both sides of the pond at the same time.
Justin: Yeah, yeah, okay. The next question is, this is a million dollar, multi-million dollar question. Do you have definitive release date for the wearable units, if so is the marketing in place to meet the festive sales period. It says at the end there, thank you and good luck.
Amit Ben-Haim: Erm, Justin, you know I cannot answer your question, but suffice to say with the addition of Pete, our Chief Creative Officer and his team which mainly came from Microsoft Nokia, we are in a great shape and ready, you know, having all of the brand marketing and clear path to market in our grasp.
Justin: I see, yeah, yeah. Also, another question they are saying is what is your address and what is your favourite bottle of Champagne, because it was from Neil in Cheltenham, he wanted to send you some champagne I think because he is an investor so he’d quite like that, but I’m assuming you wouldn’t want to give that out. Thank you very much for coming on the podcast again, and just to round off, you know, as a summary, you know, we want to get people following you on Vox market where they get RNS’ delivered straight to their smart phone whenever you release one. Could you give us three reasons why someone should hit that follow up button on the Vox market page on your page.
Amit Ben-Haim: So actually, as we are always different there’s four reasons. So the first is the only digital health Platform on AIM , we are a fast growing IoT company and you said yourself how the share price developed since last year when I came, I think more than 400%, clear strategy for growth, both in B2B2C and B2B with clear market entry, and most importantly and above all, you know having recruited and built a great team of people who actually this is the engine of the future.
Justin: Amit, thank you very much for coming on and no doubt you will have some more updates and exciting news coming so hopefully we will speak soon in the not too distance future.
Amit Ben-Haim: Very much looking forward Justin.
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No investment advice is intended, please speak to a professional before making any decisions as the price of stocks can go down as well as up and you can lose your initial investment. Please speak to a financial adviser. I do hold a position in this company.