AHAlife Restructure and Half Year Results Announcement

NEW YORK, NY and SYDNEY, AUSTRALIA--(Marketwired - February 27, 2017) - AHAlife Holdings Limited (ASX: AHL) ("AHAlife" or "the Company") announced today the appointment of Sebastian Kaufmann as the Company's CEO, effective immediately. Mr Kaufmann has been Chief Curation Officer of AHAlife since the company acquired Kaufmann Mercantile in August 2016.

Shauna Mei (CEO and Founder) and Sachin Devand (CTO and Co-Founder) have mutually agreed with the board to pursue other endeavours and cease being executives of the Company. Shauna and Sachin have also agreed to resign as directors effective immediately.

Stuart Halls will continue in his role as CFO & COO. Both Stuart and Sebastian are supported by the board, which includes Christopher Colfer, former Chief Executive of Alfred Dunhill and NED of NET-A-PORTER and current NED of LYST

The change in management follows a strategic review of the Company's performance by the non executive members of the board. The management changes coincide with a strategy to refocus the Company on delivering on its long-term opportunity as a leading luxury on-line marketplace, while also further reducing its cost structure.

Mr Mike Hill, AHAlife's Chairman, said "Our goal is to improve our customer's experience and implement a cohesive merchandising plan that builds on the key elements that make AHA an attractive operating model, namely the combined strengths in the merchandise and brand strategies of Kaufmann Mercantile and AHAlife's high-end technology, drop-ship model."

The attractive underlying metrics of the business which has high margins, high order values and highly curated items, will remain.

The changes to management and the cost base is expected to allow the Company to operate with a more efficient and leaner organisational structure with reduced operating expenditure.

Under new leadership, the Company's merchandise strategy will work hand-in-hand with marketing to improve customer retention, attract audiences with a high Customer Lifetime Value (LTV) and enhance our website engagement and conversion.

Returning its focus on a clearly defined customer, AHAlife will execute on a strategy centered on its original ethos of offering hard to find luxury items. Our marketing activities aim to activate increased revenue from unpaid channels, with a particular focus on SEO and partnerships, whilst increasing the Company's potential to take advantage of ongoing developments in data analytics, automation and personalisation. These initiatives are targeted to increase retention and customer conversion.