Special Report: CM8 shares continue to trade near 12-month highs as the company leverages its expertise in the European market.

Social commerce company Crowd Media Holdings (ASX:CM8) continues to execute on its strategic vision as it drives new sales pathways into the European market.

The company announced today that it has signed an Exclusive Marketing Services Agreement for a new social commerce and marketing partnership with Vital Innovations, to initiate the rollout of Vital’s leading brand portfolio direct to EU customers.

The London-based Vital has expanded globally with multiple sales channels across the consumer healthcare space, including baby health and family-based products.

The company’s brand portfolio includes Vital Baby and Vital Family, with products such as the Aquaint sanitising water pack – a bacteria-killing cleanser that can be sprayed on any surface (including a baby’s skin).

Vital is also the parent company of SuperSafe, the UK-based cleaning and sanitation brand which has been actively developing products used for testing and protection against the Coronavirus (COVID-19).

With a 40-year track record, Vital is now targeting the millennial market (including young families) across the EU – a market which is “perfectly matched” to CM8’s social media and influencer marketing skills, Crowd CEO Domenic Carosa said.

The two sides have executed an exclusive Marketing Service Agreement (MSA) for an EU-based social media, influencer marketing and social commerce partnership.

The MSA will include the promotion and sale of VITAL’s core brand lineup into the European market on a Direct to Consumer (D2C) model, as well as development and execution of an all-encompassing digital marketing campaign across Europe.

The deal will run for a two-year term and will be revenue-generative, with Crowd Media receiving remuneration in accordance with an agreed percentage of net sales based on products sold as a result of Crowd’s marketing services.

In a vote of confidence on the new partnership, VITAL has also agreed to make a $150,000 investment in Crowd via the acquisition of 5 million shares at 3 cents each – a premium to CM8’s last closing price of 2.8 cents.

The additional funds will be used for working capital purposes, and constitute a move which “further cements the relationship between the parties”, CM8 said.

It follows Crowd’s successful launch of a European marketing campaign for eco-friendly cleaning company KINN Living last month, where Crowd Media built out website compatible for five languages and 10 different payment methods.

And it marks further evidence of continued execution on the company’s strategic plan announced last November, to leverage its intellectual property in digital marketing for direct-to-consumer models.

The company’s competitive advantage includes a capability to execute on digital marketing campaigns in 12 different languages within the EU.

Carosa highlighted that with the Vital deal, Crowd Media has another great opportunity to leverage its “five years of social media, social influencer and social commerce experience” to add value.

With a steady run of good news flow, CM8 shares have been resilient amid the disruption caused by COVID-19, and the company’s stock price continues to trade near 12-month highs as FY20 draws to a close.

This story was developed in collaboration with Crowd Media, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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