Investor News

07 July 2015

Joint Venture agreed with Black Cactus Holdings Pty Ltd

Milestone Group PLC

(“Milestone” or the “Company”)

Joint Venture agreed with Black Cactus Holdings Pty Ltd

Milestone, the AIM quoted (AIM: MSG) provider of digital media and technology solutions, is pleased to announce that it has entered into a joint venture (“JV”) agreement with Black Cactus Holdings Pty Ltd (“Black Cactus”) to develop and commercialise all existing IP owned by Black Cactus under an exclusive global licence. The JV will trade as “Nexstar” and will be incorporated under the Company’s dormant subsidiary Nexstar League Limited.

Black Cactus has developed a number of products and services, including digital media platforms, a “Money Over IP” payment system and other technology solutions which it currently provides to global loyalty and reward programmes.

Pursuant to the JV agreement, Black Cactus will provide the JV with development capability, digital content and use of IP and Milestone will provide creative services, business development and audience activation services. This provides a complementary suite of products and services to Milestone from which a number of revenue opportunities are expected. It is also expected that the JV will assist in the Company’s development of valuable relationships and content for the Company’s flagship product, The Passion Project.

Ownership of the JV will be 51% by Milestone and 49% by Black Cactus with a 50/50 revenue share. The new JV will give Black Cactus a UK base and distribution partner as well as access to additional resourcing whilst Milestone obtains an enhanced vertical product offering and additional revenue growth opportunities.

Deborah White, CEO of Milestone, commented: 

“We are delighted to complete this agreement with Black Cactus. This deal further complements the Passion Project which now has all of the component parts in place to Engage, Identify, Direct and Reward young people under a single eco-system. Each of the 4 key pillars is under-pinned by a business unit that has products in place that can be sold through the Passion Project as well as on a standalone basis, with significant revenue opportunities in each.”

Lawrence Cummins, CEO Of Black Cactus, commented:

“Black Cactus is excited about this new joint venture to expand our vision to provide disruptive technology to our target markets on a global stage. Black Cactus’ Backstage HD platform is an innovator in agnostic digital content delivery and we look forward to continuing to build our reach and portfolio.”

For further information