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Activistic partners with Music for Relief

Published 31-OCT-2016 16:08 P.M.


3 minute read

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Activistic (ASX: ACU) and Music for Relief have formed a partnership to raise donations to assist natural disaster survivors and promote environment protection.

As a not for profit organisation, collaborating with Music for Relief fits with ACU’s strategy and intellectual property which seamlessly connects and engages the world’s 2 billion smartphone consumers with charities and causes through its proprietary micro-donation technology.

ACU’s technology allows subscribers to donate with ease and simplicity to any cause in any region without the need for credit cards or bank information. This provides substantial cost savings to beneficiaries with the nominated charity receiving 85% of the donated amount as opposed to 32% in the traditional cost intensive model.

With regard to the Music for Relief collaboration, Activistic’s platform, which is equipped with a powerful engagement tool, should be a valuable asset as it provides a highly efficient and impactful way of distributing key events.

The partnership agreement includes the collaborative development of branded mobile applications using ACU’s proprietary mobile technology, creating a win-win situation for both parties.

Investors should be reminded that ACU is a small speculative tech stock, and a successful investment in no guarantee. It is recommended that tailored financial advice is sought from a professional financial advisor before making an investment.

Music for Relief reaches huge audience

To provide some insight into Music for Relief’s activities, it was founded in 2005 by the band Linkin Park in response to the 2004 Indian Ocean tsunami. Its partner charities include the United Nations Foundation, Save the Children and the World Wildlife Fund.

Linkin Park continues to support Music for Relief through their social media following of circa 76 million people. As a guide to the traction that can be gained through this exposure, in 2010 the response to the Haiti relief campaign alone generated over 9.7 million views.

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The charity has raised over $8 million for survivors of multiple disasters across four continents including Hurricane Katrina, a cholera outbreak in Zimbabwe, earthquakes in Haiti and Japan and bushfires in Australia.

While it is difficult to estimate the dollar value of a partnership such as this, there is no denying it fits with the group’s goal of seeking scale and expanding its technology offering in order to grow revenues.

Activistic continues to target partnerships that provide scale

Shares in ACU surged more than 30% last week after the company announced that Plus Connect (the subject of a bid implementation agreement which enables Activistic to make an off market offer to acquire Plus Connect and its subsidiaries) and Collingwood Football Club have agreed in principle to develop and commercialise online sports lottery style products, the first of their kind in Australia.

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The two parties will create an exclusive joint venture, Sports Lottery Australia Pty Ltd, to deliver sports lottery style offerings across a wide range of Australian sporting organisations.

Management highlighted that the lottery products will become cornerstone funding streams for Collingwood’s community-based activities and other sporting organisations who have direct access to members and supporters.

Once again, this will provide Activistic with scale as the Australian market size of this industry is estimated to be approximately $600 million. Regarding the acquisition of Plus Connect, this is expected to be completed by early December.

As a guide, the model has been used successfully overseas with Great Britain’s historic record at the Rio 2016 Olympics directly linked to the £346 million lottery funding awarded to UK Sport, the nation’s high performance sports agency.

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S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

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