MOKO Announces Exclusive Agreement With BigTeams

MOKO Social Media Limited (ASX: MKB) (NASDAQ: MOKO), today announced it had signed a Memorandum of Understanding (MOU) to enter an exclusive agreement with US group BigTeams, which will significantly expand its offering for US students and provide access to the lucrative high school market. The commercial terms are binding and the final agreement is subject to MOKO satisfactorily completing its due diligence. BigTeams is the largest high school sports software platform in the US, providing online tools and data for US high schools to assist with sports team administration, event management and fundraising. MOKO will also acquire a 10% strategic investment in BigTeams. Under the agreement MOKO will launch a tailored version of its REC*IT app specifically targeted at the students and parents of more than 4,000 US high schools that are currently serviced by BigTeams, using data generated by BigTeams. The new app is scheduled for launch in August 2015, to coincide with the new school year. Terms of the MOU will include exclusivity for 3 years with mutual agreement to extend. MOKO CEO Ian Rodwell said the agreement would represent a significant step for the company. "This agreement will give us entry to the large US high school market, representing more than 4,000 high schools across the country," he said. "It will allow us to substantially expand our reach across this market, with the opportunity to establish a relationship with students extending from 12 years of age to college graduation." The US National Center for Education Statistics projects a 2015 enrolment of approximately 16 million students in grades 9 to 12 alone. BigTeams is the high school sports market leader with approximately 15% market share. The remainder of the market is highly fragmented, providing an opportunity for MOKO and BigTeams to work together to grow that market share. The deal is similar to that which MOKO has with IMLeagues, which provides the data for the highly successful REC*IT app that currently services students across more than 900 US colleges. "This agreement will allow us to apply the expertise we have learned through colleges to the even larger US high school market," Mr Rodwell said. The exclusive agreement will involve the licensing of BigTeams data and back end to create the "BigTeams powered by REC*IT" app for schools. All advertising and sponsorship marketing revenue will be shared with BigTeams, with MOKO receiving the majority share. BigTeams is backed by SWAN and Legend Venture Partners, and by Capital Sports Ventures who brokered the transaction.