09 December 2015
Milestone, the AIM quoted (AIM: MSG) provider of digital media and technology solutions, is pleased to announce that its subsidiary company Nexstar has amended its Joint Venture Agreement with Black Cactus Holdings Pty Ltd (“Black Cactus”).
The new extended agreement provides Nexstar with an exclusive global licence to white label the existing Nexstar platform and commercialise an additional range of IP owned by Black Cactus Holdings and its subsidiaries to all markets (retail and charitable) and not solely the loyalty and rewards marketplace.
The new IP covered by this amendment includes the Backstage HD platform, music, apps, e books, ticketing, the issue of pre-paid and credit cards, virtual banking, sports trending and betting, along with social media platform and tracking.
The extension of the current agreement offers a unique and significant revenue opportunity for the Company. The current prime positioning of the Disorder magazine on the platform home page offers access to new audiences driving an increase in content consumption and advertising value as a follow on plus the ability to retail Tier 1 digital content from global brands under the Company’s own label offers multiple immediate new revenue lines.
The first licence to white label the Backstage HD platform to be issued under the new agreement has been granted to the Milestone Foundation on a 50:50 revenue share and will be used to launch an initiative entitled “Pass it On” commencing in January 2016.
The initiative will use the support of key influencers and celebrities across a wide range of genres including music, sport, entertainment, fashion, lifestyle and others to help promote and drive awareness of the platform and its purpose via their social media audiences. The initiative will use funds generated via the sale of digital media content including music, games, e-books, films, videos and TV shows to support the delivery of initiatives operated by both the Foundation, its flagship product the Passion Project and its associated partners.
Examples of these initiatives include the Dulwich Hamlet FC “ASPIRE” project, the Milestone Foundation Pupil Referral Unit Rugby programme in conjunction with Sean Edwards (Welsh RFU Coach) and the Rugby League Foundation, a music project in Hackney and an initiative with the British Legion and ATR training limited involving ex-servicemen/women amongst others.
The Company has already received support from a number of celebrity / social influencers and sports personalities for the initiative and requests from other large charitable / community initiatives about the possibility of using the platform for similar initiatives with a number of conversations actively being pursued.
Deborah White, CEO of Milestone Group plc, commented:
“We are pleased to have agreed an extension to the original agreement. This opens up a number of new opportunities, not only for Nexstar, but across the wider business. This extended agreement is a complimentary fit with the rest of the business, tying in with the Milestone Foundation, the Passion Project whilst supporting the Company’s overall development strategy.”
Larry Cummins, Managing Director of Black Cactus Holdings PTY Ltd , commented:
“Black Cactus is delighted to expand its existing JV partnership with MSG under the Nexstar company. This relationship allows us the opportunity to expand our reach whilst promoting the use of our unique IP solutions into new markets.”
Kevin Everett, Milestone Foundation lead, commented:
“This opportunity combined with support from celebrities and influencers across the sports and entertainment sector offers the Foundation with an exciting and innovative approach to becoming self sustainable whilst supporting those charitable partner initiatives that would ordinarily fall outside of normal funding route-ways.”
Catenae Innovation Plc
Tel: 020 7929 7826
Cairn Financial Advisers LLP, Nominated Adviser
Liam Murray/Jo Turner
Tel: 020 7213 0880
Alexander David Securities Limited, Broker
Tel: 020 7448 9820