MAYBE IT HAS SOMETHING TO DO WITH NOT MEETING EXPECTATIONS1:...

MAYBE IT HAS SOMETHING TO DO WITH NOT MEETING EXPECTATIONS

1: Tranche 2: AUD$2.0 million 24-month facility, to be drawn down in 90 days with a fixed
conversion price of 2.0 cents, subject to the parties agreeing to a business plan which
focusses on the following key collaboration objectives:
o IIC introducing products and/or businesses to Crowd that will leverage Crowd’s
proprietary technology and knowhow, enabling those products and/or businesses
to be promoted and marketed through Crowd’s well-established digital marketing
platforms and distribution channels;
o IIC introducing strategic business opportunities to Crowd (such as exclusive
marketing and joint venture arrangements) to market its associated products in
identified new countries/regions including Scandinavia, Benelux, Eastern Europe,
Asia and Australia; and
o leverage the strengths, intellectual property and know-how of each party, noting
that Crowd’s strengths include its proprietary technology (currently only utilised in
its Q&A and Subscription verticals), social media and digital marketing; IIC’s
strengths include innovative product development, brand-building, international
business operations, brand positioning and digital media influencer marketing.
2: Launch of 6 D2C brands in FY
2021 across mobile, web and
Amazon platforms
3: Crowd’s CEO Domenic Carosa said: “We are excited to have executed a deal with Teadora. According to a
market report from Grand View Research, the global organic personal care market size was estimated at
USD13.33 billion in 2018 and is projected to register a CAGR of 9.4% from 2019 to 2025 (1) . Increasing
demand for cosmetics, skin and hair care coupled with rising need for environmental, animal-friendly products
is expected to drive the growth. With Teadora we have found a strong partner to build a profitable business for
Crowd in Europe.”
This collaboration marks another milestone in the execution of the Company’s strategic vision, as outlined by
Crowd’s Chairman Steven Schapera at the November 2019 AGM, when Mr Schapera highlighted Crowd’s
plan to sell exemplary products integral to the lives of European-based millennials on a Direct to Consumer
model. Crowd has deep experience in digital marketing to millennials and Gen Z in most European countries,
across 12 different languages, and will be using influencer and performance marketing strategies to drive
TEADORA sales.
4: “We are excited to have executed a deal with MD Complete. According
to a market report from Grand View Research, it is projected that the global vegan cosmetics market will reach
$20.8 billion by 2025, propelled by millennials(1). We will be leveraging our existing influencer network and the
ubiquitous Amazon e-commerce marketplace to grow our MD Complete business in Europe where customers
will be able to access clinic-quality anti-aging skin treatments from the comfort of their homes.”
5: Crowd’s CEO Domenic Carosa said: “We are pleased to have executed an exclusive agreement with VITAL.
They are a powerful, family-owned company and have been in business more than 40 years. Their portfolio
brands are of special interest to Crowd because their target customer is almost always a millennial, perfectly
matched to our social media and influencer marketing skills. We have already identified a number of VITAL
key products and market segments in the healthcare and consumer space where we will focus our initial efforts.
Crowd can really add value here, leveraging our five years of social media, social influencer and social
commerce experience for the benefit of both parties.”
6: While sales from Crowd Direct were up 20% QoQ to $379k, the division has not performed in line with expectation. This can be attributed to marketing spend that was previously aimed at the brick-and-mortar channel being redeployed to the Crowd Direct channel during COVID. It has further created an environment of too many marketing dollars chasing too few marketing opportunities and inefficient ROI. With Crowd Direct structured in a way to minimise financial risk, we intend to re-focus the division around its best-performing brands, Kamu and Kinn.
IF CROWD HAD ACHIEVED A MATERIAL IMPROVEMENT IN REVENUES, AS PREDICTED BY DOMENIC, THE SHAREPRICE WOULD BE 10c PLUS AND SHAREHOLDERS WOULD HAVE THE CONFIDENCE THAT WE COULD BUILD ON THIS MOMENTUM WITH OTHER BRANDS, OPTIONS WOULD BE CONVERTED TO HELP FUND H2 & H3. @Diabloracer YOU WERE PREDICTING CROWD DIRECT REVENUE OF 1.2MIL, SO THERE IS A BIG GAP BETWEEN THE POSITION INVESTORS HOPED TO BE IN AND THE SITUATION WE FIND OURSELVES IN. THE UPCOMING INVESTOR BRIEFING HOPEFULLY WILL GIVE CLARITY, BUT YOU CAN'T DISMISS THE LINK BETWEEN CROWD DIRECT PERFORMANCE AND SHAREHOLDER SENTIMENT