Virtual Piggy Provides Business Update
Accelerated consumer acquisition and international expansion
Virtual Piggy promotes financial management while empowering youth under 18 to make purchasing, saving and other money management decisions for themselves, within the boundaries setup by parents. The technology serves as a family wallet that is available online or via mobile, and is always 100% free to use.
In Q2, Virtual Piggy initiated a consumer acquisition campaign to start building their subscriber base. Over the past four months, Virtual Piggy has added over 400,000 new accounts. The accounts are primarily within the U.S. with some recently added Canadian accounts.
The two main areas for teen and tween purchases online are clothing & accessories, and gaming. Virtual Piggy continues to integrate with retailers and game publishers in the US and Europe. In Q3, Virtual Piggy entered into co-marketing initiatives with Claire's www.claires.com and Habbo Hotel (Sulake) www.habbo.com. With over 3,500 stores worldwide, Claire's is a major retailer for the youth market. Virtual Piggy has also recently integrated with Habbo Hotel, which is one of the largest online communities in the world for teenagers. Habbo Hotel currently has over 290 million registered characters in 150 countries and a user base composed 90% with 13-18 year olds.
Virtual Piggy also entered into a marketing agreement with InComm in early Q3 to deliver digital gift cards through Virtual Piggy's e-commerce operation. This allows parents, grandparents, aunts, uncles and friends to easily purchase and send digital gift cards from major brands directly to users of Virtual Piggy. These retailers and publishers will be featured in upcoming holiday promotions at Virtual Piggy.
The company also raised $6.4 million during the second quarter through a private placement of securities as well as option and warrant exercises, bringing cash at the end of Q2 to $8.3 million.
"It's been a very busy two quarters," said Dr. Jo Webber, CEO and Founder of Virtual Piggy. "We are thrilled to be at the point in our growth where we are onboarding users at continuously accelerating rates, integrating major retailers and gaming publishers, and seeing the adoption and use of our platform on a global basis."
Consumer acquisition is the core focus for Virtual Piggy in 2013, and the company continues to rapidly grow both its user base and merchant base, as well as develop channel partner programs with major ecommerce and gaming platforms. In Q2, Virtual Piggy launched in Europe, and the first merchants and users will be live using the Virtual Piggy service in Europe in Q3 2013. As the company builds out this ecosystem, it expects to see some revenue generation from the US, European, and Canadian markets in Q3 and Q4. However, the company does not expect to generate significant revenue until 2014.
About Virtual Piggy, Inc.
Virtual Piggy, Inc. is the first e-commerce solution that enables kids to manage and spend money within parental controls. It enables parents to teach financial management through the use of a secure family wallet that is available online or via mobile and is always 100% free to use. The technology company delivers online security platforms designed for the Under 18 age group in the global online market, and also enables online businesses the ability to function in a manner consistent with the Children's Online Privacy Protection Act ("COPPA") and similar international children's privacy laws. The company is based in Hermosa Beach, CA and on the Web at: www.virtualpiggy.com.
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All statements herein other than statements of historical facts are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Such statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements. Such factors include, but are not limited to, our ability to raise additional capital, our limited operating history and revenue, our ability to attract and retain qualified personnel, our dependence on third party developers, our ability to develop new services, market acceptance of our services, legislative, regulatory and competitive developments, enforcement of our intellectual property, general economic conditions, as well as other factors set forth under the caption "Risk Factors" in our Forms 10-K filed with the SEC, and other filings with the SEC.
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