Milestone Group PLC Milestone Group Plc : Company Trading Update And New Agreement Signed With Envoy Group Corp Inc

 
TIDMMSG 
 
 
   MILESTONE GROUP PLC 
 
   ("Milestone" or the "Company") 
 
   Company Trading Update and New Agreement signed with Envoy Group Corp 
Inc 
 
   Milestone (AIM:MSG), the AIM quoted provider of digital media and 
technology, notifies shareholders that it has entered into a software 
license agreement ("License Agreement") with Envoy Group Corp (soon to 
be renamed Black Cactus Global, Inc) ("Black Cactus Global"), a OTC 
Bulletin Board listed company. The License Agreement supersedes the 
joint venture agreement between Milestone and Black Cactus Holdings Pty 
Limited that was announced on 9 December 2015, creating Nexstar (the 
Company's subsidiary). 
 
   Under the terms of the Licence Agreement Black Cactus Global has granted 
Milestone an exclusive sublicense for the British Isles and certain 
British Overseas Territories for a range of products previously 
announced, including Backstage HD, MusicRoo, Black Cactus Music 
(referred to from this point as Music platform), Card programmes and KYC 
products. The expanded agreement additionally allows Milestone to use 
the Black Cactus Global Blockchain platform to build bespoke solutions 
whilst developing its own IP. 
 
   In consideration for the Licence Agreement in respect of licenced 
products, Milestone has agreed to pay Black Cactus Global a royalty of 
10% of the first GBP500,000 of gross revenues and 5% on any gross 
revenues in excess of this amount. In addition, Milestone has agreed to 
issue Black Cactus Global 744,131,477 shares which equates to 29.5% of 
its enlarged share capital ("Share Consideration"). The Share 
Consideration is subject to shareholder approval. 
 
   Milestone will earn revenues from its own marketing of the licenced 
products as well as revenue from business introduced within the UK by 
Black Cactus Global. Milestone will also receive a revenue share for 
those introductions by Milestone to Black Cactus Global outside of the 
UK and a share of all other agreements made by Black Cactus Global. 
 
   Update 
 
   Following a review of Milestone since September 2017, the Company's 
newly refocused strategy is almost complete and expected to be finalised 
by the end of this calendar year by which time all ties with the social 
good and charity activities including The Passion Project, Alchemy, 
Winning in The Game of Life and the Milestone Charitable Foundation will 
have ceased. 
 
   In keeping with the revised strategy the Company has also ceased being a 
member of the Social Stock Exchange. 
 
   Milestone's Board now comprises Tony Sanders as interim CEO, Guy Meyer 
as Business Development Director and Kevin Everett as Non-executive 
Director. Sean Sydenham has been appointed as Company Secretary. 
 
   With the new Licence Agreement, Milestone's focus is principally on 
Digital Media and Fintech products utilising Blockchain technology. 
 
   The Board has reviewed its current agreements and contracts and will 
only pursue those agreements that will produce revenues within feasible 
timelines and as such will not be pursuing some that have previously 
been announced. 
 
   During the review it became apparent that a number of the opportunities 
failed to deliver satisfactory results due to poor execution both 
internally and externally.  The Company believe that the refocused 
strategy will overcome these issues in the future. 
 
   Among those agreements which are not being pursued are those involving 
the Milestone Foundation and Passion Project, the cloud-based virtual 
banking and pre-paid card agreement with two London-based finance and 
investment companies announced in April 2016, the agreement with an 
Indian focused money transfer and pre-paid card group announced in 
November 2016 and a payroll contract with a UK based entertainment 
payroll specialist announced in October 2016. 
 
   The Company is focussing its resources on the revised strategy of 
Blockchain focussed products in Fintech and Media as initially announced 
in September 2017.  Recent developments in Media publishing include the 
recent signing of two clients and the ongoing joint venture agreement 
with Self Made as announced in March 2017. 
 
   With regards to the GBP1.25m placing default that occurred in October 
2016, the Company continues to pursue the counterparty involved and 
hopes to make an announcement in the near future. 
 
   Tony Sanders, CEO commented: 
 
   "The past two months have been challenging as we have separated the 
social impact side of the business from the purely commercial side, 
taking the opportunity to review every element of the business structure 
and associated costs. We are now concentrating our efforts on our 
Blockchain based products within digital media and the Fintech sectors 
and are pleased to have signed the new agreement with Black Cactus to 
allow us to expand further into this market. 
 
   Since our initial announcement regarding our proposed use of Blockchain, 
interest in the area has grown significantly, we are pleased to be seen 
as an early adopter, and look forward to making further announcements 
regarding our capabilities in this area in the near future. 
 
   We are now looking to build a sales team to work with Guy Meyer, our new 
Business Development director to focus the sales and marketing effort in 
the two key business areas. 
 
   I would like to thank our shareholders for their continued confidence 
and patience during this period of reorganisation." 
 
   For further information: 
 
 
 
 
Milestone Group PLC 
 Tony Sanders                                      Tel: [phone] 
 
Cairn Financial Advisers LLP, Nominated Adviser  Tel: [phone] 
 Liam Murray / Jo Turner 
 
Hybridan LLP, Broker                             Tel: [phone] 
 Claire Louise Noyce                              Tel: [phone] 
 Walbrook PR Limited, PR 
 Gary Middleton / Paul Cornelius 
 
 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Milestone Group PLC via Globenewswire 
 
 
  http://www.milestonegroup.co.uk/ 
 

(END) Dow Jones Newswires

December 06, 2017 09:21 ET (14:21 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.