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RNS Number : 9359E
Primorus Investments PLC
09 July 2019
Primorus Investments plc
("Primorus" or the "Company")
Update on WeShop Limited
The Board of Primorus is pleased to provide an update to
shareholders on its investee company WeShop Limited ("WeShop"),
following receipt of a shareholder update.
Primorus has invested a total of GBP875,000 in WeShop
representing approximately 3.5 per cent. of its issued share
capital of WeShop.
A summary of the update from WeShop is set out below:
Introduction
WeShop is pleased to update shareholders on the further progress
that has been made since the last announcement in March 2019.
The last quarter has seen considerable momentum in finalising
the product and proposition for user acquisition later this summer.
Some significant commercial and product agreements, and
integrations have also been completed that drive further
competitive advantage versus other social commerce, social network
and e-commerce platforms. These include:
1. Amazon license agreement to pay WeShop for user purchases
facilitated by WeShop, and to enable Amazon inventory to be
available on the WeShop platform.
2. Instagram integration license: functionality to enable WeShop
users to import existing content from Instagram to post on
WeShop.
3. Apple iTunes (Apple Services) partner agreement to pay WeShop
for user purchases facilitated by WeShop, and to enable iTunes
inventory of all music, video, books and other media to be
available on the WeShop platform.
Additionally, WeShop has completed the implementation of
powerful functionality that strengthens its user proposition
through an enhanced product and merchant inventory. Its depth and
breadth of inventory gives consumers the fundamental choice of
which merchant they buy a product from, and at what price point.
This is a key milestone in delivering the best possible experience
and proposition to our users. The commercial agreement with Apple
Services ensures that users can share and recommend products and
media across the full range of their interests and lifestyle, and
not just fashion, like most social commerce platforms. WeShop will
look to expand its product offering even further with hotel and
travel inventory later this year.
Instagram and Social Commerce
There has been recent press about the strategic direction that
Instagram is pursuing. WeShop is pleased to provide some commentary
around what this means, and how this further strengthens our
confidence in the direction that WeShop has always pursued, and
continues to pursue, relentlessly.
Instagram has recently introduced its 'Check-out' functionality
that allows users to buy directly from a limited selection of 26
brands and circa 55 influencers, with the check-out taking place
in-app. Whilst we are pleased with the growing awareness and
conversation around Social Commerce that this is generating, it
also serves to highlight the key differences, and we believe -
competitive advantage - between WeShop and Instagram.
Instagram has enabled direct to consumer commerce, where brands
can sell direct to customers through its social platform, as
another distribution channel. WeShop's mission continues to be
about enabling anyone to recommend a product and make it shoppable,
based on the key premise that a "word of mouth" recommendation from
a friend is the most important form of influence on a consumer's
purchasing decision. Social commerce, at the most basic level, is
based on brands selling through social channels, but in its
powerful format, like the WeShop social commerce model, is based on
authentic, shoppable user to user recommendations. WeShop
digitalises "word of mouth" marketing, where everyone is an
"influencer" in their own right, and we are excited about further
validating this at scale later this year. The statistics are
compelling, as people are 4x more likely to purchase a product that
has been recommended by a friend (Nielson).
WeCoin(TM) ecosystem rewards programme
WeShop has launched phase 1 of its new rewards programme,
designed to drive ongoing engagement and retention of users by
enabling them to earn WeCoins(TM) for creation and distribution of
quality content, shopping through WeShop verified merchants, and
browsing. The WeCoins(TM) can be redeemed with over 100+ redemption
partners, including Uber, Spotify, Just Eat, Amazon, Starbucks and
many others. Phase 1 allows users to redeem their WeCoins(TM) for a
digital voucher. Phase 2 will allow users to redeem their live
WeCoin(TM) balance against products on WeShop, in combination with
cash. This creates a true ecosystem where WeCoins(TM) are earned
and redeemed within the platform. As part of our continuous drive
to deliver users choice and an open platform, WeShop is also
working on a potential offline tie up with a global payments
service provider, to enable WeCoins(TM) to be loaded onto a
physical or virtual WeShop card, that allows users to spend their
WeCoins(TM), on anything they like offline or online. WeShop is
fully aware of the benefits and opportunities that blockchain and
crypto-currencies present, and some of the company's major
shareholders are firmly embedded within this area, supporting the
business on exploring how the initial rewards eco-system can be
globally rolled out.
User acquisition
There are clear and defined plans for mass user acquisition and
engagement. Further updates will be provided over the following
quarters.
James Sowerby, WeShop's CEO, commented:
"Very significant progress has been made over the last quarter
to ensure that the product and proposition are ready for user
testing at scale over the Summer. We are very proud of how strong
the product is now, and the competitive advantage we have developed
versus other platforms which exist in this space. We continue to
build a platform with our users, for our users. I genuinely believe
that WeShop's original vision, is more compelling, powerful and
relevant today than it ever has been.
I would like to take the opportunity to thank all of my
co-directors, colleagues, partners and investors who have supported
the business, with their belief in social commerce. As a result of
all the support and hard work, we now find ourselves in a very
unique position."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Primorus Investments plc: +44 (0) 20 7440 0640
Alastair Clayton
Nominated Adviser: +44 (0) 20 7213 0880
Cairn Financial Advisers LLP
James Caithie / Sandy Jamieson
Broker: +44 (0) 20 3621 4120
Turner Pope Investments
Andy Thacker
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