ClearStar,Inc. AGM Statement (0670Z)
24 Maggio 2016 - 8:01AM
UK Regulatory
TIDMCLST TIDMCLSU
RNS Number : 0670Z
ClearStar,Inc.
24 May 2016
24 May 2016
ClearStar, Inc.
("ClearStar" or the "Company")
AGM Statement
ClearStar (AIM: CLSU and CLST), the technology and service
provider to the background check industry, will be holding its
Annual General Meeting ("AGM") today at 10am EDT at the offices of
Sutherland Asbill & Brennan LLP, 999 Peachtree St, NE, Suite
2300, Atlanta, GA 30309, USA. At the AGM, the Chairman of the Board
will make the following statement:
Business & Trading Update
"As we noted in our full year results statement in March, we
entered 2016 with strong revenue momentum - receiving increasing
demand for our services across each of our divisions - and I'm
pleased to report that this has continued. The development, and
introduction, of new software functionality for existing clients is
driving revenue growth alongside winning business from new clients.
However, the revenue ramp of a substantial contract in our Medical
Information Services ("MIS") division that had been expected to
occur in 2016 is now expected to fall into 2017. The delay is
because the transfer of the Channel Partner client to the ClearStar
platform is taking longer than anticipated due to alterations in
the client's requirements. As a result, we expect to report an
increase in annual revenues of 20-25% in 2016, which is
approximately 10% below market expectations.
"I am also pleased to report that the cost control measures and
operational efficiency initiatives that we implemented in the
second half of last year have resulted in better-than-expected cost
savings, and we are on track for this to be maintained for the full
year. As a result, we expect to achieve EBITDA positive for 2016,
but, due to the lower-than-expected revenues, we anticipate this
will be significantly below market expectations."
Launch of ClearID & ClearContact
"We have continued to strengthen the foundations of our business
- in particular, our technology offering, which is our core
strength. As noted previously, last year we completed the
development of our biometric recognition software and a device
agnostic solution with electronic address book, which, today, we
are officially launching as ClearID and ClearContact
respectively.
"Using ClearID, employers can quickly, on the spot, verify the
identity of a labourer by taking a photo of their face and their
government-issued photo ID. ClearID then validates the ID and
matches the candidate to it, returning actionable, compliant
results in under five minutes. ClearContact is a one-stop shop for
employers to organise their casual labour workforce, schedule them
for work, and track the progress and results of any background
screening services requested. Aimed for use on mobile devices,
these solutions are designed to increase the speed and efficiency
of the recruitment process, whilst enhancing the applicant
screening experience, which is particularly beneficial for remote
hiring and when large numbers of temporary workers are employed on
a sustained basis. In-keeping with our efforts to globalise our
technology and services, ClearID can be supported in over 130
countries. We believe these solutions are a first in the background
screening industry."
Patent Filing
"Similarly, to protect our IP, we recently filed for a
provisional patent for our WebCCF drug testing product. WebCCF has
revolutionised the online fulfilment of drug and alcohol tests for
human resource managers with a paperless chain of custody that
expedites the on boarding of new hires and efficiently manages the
ongoing compliance testing of the workforce. The latest update of
the software leverages the large footprint of over 4,500 collection
sites to provide clinical testing screening in an effort to
automate and remove bottle necks from the management of a fluid
workforce."
Strategic Review
"The Board continually reviews its options and opportunities for
growing the business and maximising shareholder value. To assist
this process, the Board has appointed Croft & Bender LP as
financial adviser to the Company to conduct a strategic review (the
"Strategic Review") to help the Company evaluate options that would
enable ClearStar to accelerate the development and sales of our
market-leading technology and solutions. The Board has commenced
discussions with a number of interested parties, all of which are
at a preliminary stage and may or may not lead to an acquisition of
a proportion, or all, of the Company's securities. The Board
confirms that it would not entertain any indications of interest
that did not represent a significant premium to the current market
value of ClearStar.
"As a company registered in the Cayman Islands, ClearStar is not
subject to the UK City Code on Takeovers and Mergers. We will
update the market with any material development with the Strategic
Review, as appropriate.
"The Board and management of ClearStar remain excited about the
Company's growth prospects. We look forward to reporting further
operational progress and technological achievement at the time of
the interim results, which are expected to be announced in
September."
Total Voting Rights
The Company confirms that it has 36,302,900 ordinary shares with
a nominal value of US$0.0001 in issue and admitted to trading on
AIM under the ISIN KYG2294M1050 and ISIN KYG2294M1134.
Enquiries
ClearStar, Inc.
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Robert J. Vale, Chief Executive
Officer
David Pattillo, Chief Financial
Officer +1 770 416 1900
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Cenkos Securities plc
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Max Hartley, Mark Connelly
- Corporate Finance
Julian Morse - Sales +44 20 7397 8900
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Luther Pendragon Ltd
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Harry Chathli, Claire Norbury +44 20 7618 9100
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About ClearStar
ClearStar, Inc. is a leading and trusted background check
technology, strategic services, and decision-making information
provider to employers and background screening companies.
A seven-time Inc. 5000 honouree and founding member of the
National Association of Professional Background Screeners,
ClearStar has provided innovative technology solutions to
businesses in the human capital management industry from its
corporate offices in Alpharetta, Georgia since 1995. For more
information about ClearStar, please visit: www.clearstar.net.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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