REG - Electric Guitar PLC - Joint venture to build new AI-driven products

Electric GuitarAnnouncement

31/07/2024 07:00

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RNS Number : 4737Y  Electric Guitar PLC  31 July 2024

 

31 July 2024

 

 

Electric Guitar PLC

("Electric Guitar" or the "Company")

 

Electric Guitar establishes joint venture to build new AI-driven products

 

The Board of Electric Guitar PLC (LSE: ELEG), the digital marketing and
advertising company providing first-party data solutions, is pleased to
announce that it has agreed to launch Marcomms.ai as a UK joint venture with
Exelia Technologies Limited ("Exelia"). Exelia is a Cyprus-based software
development business with a specialised team of developers proficient in
blockchain, machine learning, data processing and AI.

 

Marcomms.ai is a 50:50 joint venture that combines Exelia's technical
capabilities in all forms of AI and data transformation with Electric Guitar's
administration, sales and general commercialisation expertise, and the unique
global dataset ("Global Data Store") owned by 3radical, Electric Guitar's
principal operating subsidiary. In addition, the joint venture will benefit
from 3radical's established clients in the marketing communications and
advertising industry, providing valuable data and a ready market for the joint
venture's offerings in the marketing communications and advertising sectors.

 

Marcomms.ai will harness the transformative potential of AI in the marketing
communications and advertising sector to position the joint venture, and by
extension Exelia and Electric Guitar, as a leading authority in AI-enhanced
marketing and advertising solutions.

 

Marcomms.ai's first product development will use 3radical's Global Data Store,
which contains over 1 billion data points, to create advanced machine learning
algorithms to help clients increase consumer engagement and allow them to
understand their audience at a new level.

 

Work on Marcomms.ai's first product has already begun, and the parties expect
to start user acceptance testing with Electric Guitar's key clients in the
autumn.

 

Exelia will fund Marcomms.ai's initial working capital in relation to data
engineering and transformation, data analysis and dashboard creation based on
the Global Data Store. Electric Guitar will fund the initial costs in relation
to incorporation and administration of the joint venture company, access to
the Global Data Store, and the initial productisation and introduction of the
minimum viable product to its customers and prospects.

 

Market opportunity

 

The $800bn digital marketing and advertising industry is undergoing
significant transformation, driven by privacy and technology. AI and other
advanced technologies such as machine learning and blockchain present many
potential opportunities to accelerate that disruption, offering unmatched
personalisation, real-time data interpretation, and targeted audience
outreach. This creates opportunities to increase the efficiency of media
planning and procurement, providing advertisers with greater control and
transparency over their advertising spending, as well as other applications
across marketing communications and related services.

 

Combining Exelia's and Electric Guitar's resources and capabilities allows the
joint venture to capitalise on these fundamental industry developments.

 

John Regan, CEO of Electric Guitar, commented: "AI is already causing
significant disruption in the advertising industry, but marketers are learning
that you need the right data for AI to work. 3radicals' Global Data Store
contains over 1 billion data points which describe how consumers interact with
3radical's engagement tools. Being able to use this data to power our AI tools
gives us a significant advantage."

 

Margarita Maimoni, CEO of Exelia Technologies Limited, added: "As long-term
experts in advanced technologies like AI and blockchain, we know that
marketers have barely scratched the surface of the benefits that AI has to
offer. We are looking forward to creating groundbreaking products which help
transform how marketing works."

 

For further information:

 

 Electric Guitar PLC

John Regan (CEO)                                      07721 348 826

 Exelia Technologies Limited

 Margarita Maimonis (CEO)                              +357 22 25 61 61

 Allenby Capital (Nominated Adviser and Joint Broker)

 Jeremy Porter                                         020 3328 5656

 Piers Shimwell

 Dan Dearden-Williams

 Axis Capital Markets (Joint Broker)                   020 3026 0320

 Richard Hutchison

 Global Investment Strategy UK (Joint Broker)          020 7048 9400

 James Sheehan

 Yellow Jersey (Financial PR)

 Charles Goodwin                                       020 3004 9512

 Annabelle Wills                                       electric@yellowjerseypr.com

                          (https://appriver3651008983.sharepoint.com/sites/CompanyData/Shared%20Documents/Corporate%20Finance/Mandated%20Transactions/Electric%20Guitar/Announcements/electric@yellowjerseypr.com)
 Bessie Elliot

 

Notes to Editors

 

Electric Guitar PLC (AIM: ELEG) is the provider of first-party data solutions
for the marketing and advertising industry, empowering businesses to realise
the value of their first-party data. In an era of changing consumer attitudes
towards the use of their data, tighter privacy legislation, and the demise of
third-party cookies, first-party data is now the key to success in digital
marketing. Electric Guitar's strategy is to acquire and scale businesses that
help marketers maximise the value of first-party data by curating, managing,
and deploying it, and in doing so making Electric Guitar the industry standard
for first-party data solutions. As the first part of this strategy, Electric
Guitar has acquired 3radical Limited, a company that utilises its Software as
a Service platform, 3radical Voco, to enable organisations to engage
individuals and request their data directly using interactive digital
experiences.

For further information please visit www.electricguitarplc.com
(http://www.electricguitarplc.com) .

Exelia Technologies Limited

 

Exelia Technologies Limited is a Cyprus-based firm with a specialised team of
developers expert in blockchain, machine learning, data processing and AI.
Exelia's technical capabilities encompass the design and development of
AI-driven tools, and it has already developed the proof of concept of an
AI-driven procurement tool targeting the shipping industry, the base module of
which can also be tailored for wide potential application, including for the
marketing communications and advertising sectors.

 

For further information please visit www.exeliatech.com
(http://www.exeliatech.com/) .

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