SOURCE: Reign Sapphire Corporation

Reign Sapphire Corporation

September 06, 2017 11:22 ET

Reign Sapphire Corp. Provides Shareholder Update

Signs of revenue traction since December 2016 business acquisitions

BEVERLY HILLS, CA--(Marketwired - Sep 6, 2017) - Reign Sapphire Corp. (OTCQB: RGNP) ("Reign" or the "Company"), a direct-to-consumer, branded and custom jewelry company, is pleased to provide the following shareholder update discussing highlights of the first half of 2017, current initiatives and plans moving forward.

Overview

Since the Company's IPO and the December 2016 acquisition of 2 of our 3 brands, management has focused primarily on integrating the assets into its internal fulfillment, customer service and marketing system and on streamlining operations to resume growth of key performance indicators (KPIs), further discussed in our presentation posted on our corporate website and filed as part of our Form 8-K on September 5, 2017.

Reign Sapphire Corp. now wholly owns and operates 3 unique, direct-to-consumer, niche brands, each with increasing social media followings, one of the KPI's central to our growth:

  • Reign Sapphires: millennial targeted, sustainably sourced and crafted, sapphire jewelry
  • Coordinates Collection: customized engraved location coordinates fixing in time life's special moments
  • Le Bloc: customized letter block charms jewelry

Reign Ventures is our joint venture platform that develops and acquires advanced jewelry technology that should provide us with an advantage in new product development and superior marketing capabilities.

2017 Accomplishments

Much of our efforts since acquiring the brands, have focused on their integration into our centralized operations to achieve scale and allow greater ROI on marketing and advertising, key drivers, due to our direct-to-consumer model.

Marketing channels currently used in varying degrees include:

  • Affiliates - Commission based sales
  • Influencers - Celebrity promotion & gifting
  • Email - Personalized campaigns & promotions
  • Digital advertising - Keyword purchases, sponsored ads
  • Social Media Marketing
  • Events and PR - Publicity & media outreach

A key factor in our sales success is the growth of our social media following which is now over 100,000 Facebook and Instagram followers across our brands, 76,000 of which are Instagram followers of our Coordinates Collection brand.

We are also seeing improving ROI in email campaigns and digital advertising, which is critical due to their importance in our overall marketing plan. Additional details may be found in our recently released investor presentation posted on our corporate website and filed as part of our Form 8-K on September 5, 2017.

Strategic Marketing Optimization

We also sought to further refine our marketing strategy in order to accelerate sales growth and restructure our sales strategy to improve profitability.

In March 2017, we launched an improved reseller program intended to boost profit margins by eliminating inventory requirements on the part of our resellers.

We are deploying Just in Time ("JIT") supply and delivery with a point-of-sale app where the customer can create, visualize and order the customized product at the reseller's location, eliminating the need for local inventory storage.

Other strategic marketing initiatives from the first half of 2017 include Reign Sapphires' entry into the $15B bridal jewelry market and formalization of our growing corporate gifts business into a separate division and expansion into the UK and European markets.

Q2 Highlights

We believe the optimizations to marketing applied since acquiring the Coordinates Collection and Le Bloc brands in December 2016 are beginning to take effect.

Q2 revenues, while declining on a year-over-year basis due mainly to elimination of lower margin sales channels, are starting to resume growth with an almost 60% appreciation in sequential revenue from Q1 to Q2.

Gross margins improved 11% YoY which we believe is an indication of traction from the modifications we have made to marketing strategy as well as new sales initiatives.

In the past we have projected revenues in 2017 of over $2,000,000 and we can affirm that now that Q2 results are in.

2017 Initiatives

In addition to the expansion into the bridal, corporate gifts markets, and the European geographical area, there are several product and sales initiatives that we feel will continue to accelerate sales and profitability.

As a special "Thank You" to Reign Sapphire Corporation's shareholders, we now offer shareholders year-round pricing privilege of 25% off products company wide. 

Shareholders owning at least 1,000 shares (ticker OTCQB:RGNP) can call in to receive a discount code exclusively for shareholders. Shareholders can also opt-in to receive pre-release notifications of new and limited edition collections.

We are especially optimistic about the potential for recently launched Coordinates Collection's Delta Collection line, a product initiative targeting the growing men's jewelry market, one we have determined to be untapped by our current initiatives and one we feel has significant potential to expand sales.

Advisory Board

We are fortunate to have an expert advisory board especially active in helping guide the company's business and financial success. In addition to legal and corporate financial expertise represented by the board, we were able to gain important specialization with the addition of Thierry Chaunu, a luxury goods executive with prior senior management roles at Chopard, Christofle and Cartier, and Pinny Gwinisch, founder of Ice.com and adjunct professor at McGill and Rutgers University.

Summary

Initiatives since acquiring these unique, niche brands, primarily operational in nature, are starting now to take effect as demonstrated by financial performance and a number of improving sales and marketing metrics.

Due to the effects of these and other planned initiatives, along with our business' significant holiday seasonality, we can expect 2017 to continue improvement in sales and profitability, resulting in affirmation of our projections of $2,000,000 in revenue for the year.

We welcome inquiries from shareholders and members of the investment community. info@reignsc.com or (213) 457-3772.

Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of the U.S. federal securities laws, which statements may include information regarding the plans, intentions, expectations, future financial performance, or future operating performance of Reign Sapphire Corporation ("Reign" or the "Company"). Forward-looking statements are based on the expectations, estimates, or projections of the Company's management as of the date of this press release. Although Reign's management believes these expectations, estimates, or projections to be reasonable as of the date of this presentation, forward-looking statements are inherently subject to significant business risks, economic and competitive uncertainties, or other contingencies, which could cause the Company's actual results or performance to differ materially from what may be expressed or implied in the forward-looking statements. Important factors that could cause Reign's actual results or performance to differ materially from the forward-looking statements include those set forth in the "Risk Factors" sections in the Company's filings with the Securities and Exchange Commission, including the risks set forth in the company's Annual Report on Form 10-K for the year ended December 31, 2016, which is available for viewing on the SEC's EDGAR website. These forward-looking statements speak only as of the date of this press release and, except as required by law, Reign specifically disclaims any obligation to update these forward-looking statements, even if new information becomes available in the future.

Contact Information

  • Contact:
    Reign Sapphire Corporation
    Investor and Media Inquiries
    info@reignsc.com
    +1 (213) 457-3772