There have been some important developments in MyFiziq Limited’s (ASX:MYQ) joint venture arrangement with Body Composition Technologies Pte Ltd (BCT).
With MyFiziq’s support, BCT has undertaken a capital raising by way of convertible note to inject a total of $1.92 million into the company.
Under the terms of the raising, MyFiziq will participate in the amount of approximately $670,800, which will increase its shareholding in BCT, upon conversion, to a majority stake of 54.5% in BCT (on a fully diluted basis).
The balance of the BCT convertible note raising is being taken up in full by Gold Quay Capital Pte Ltd.
The convertible note has a two-year term at an interest rate of 2.5%.
MyFiziq remains in a strong cash position with further revenue now due from the BCT joint venture, being a license fee payment of $200,000 and a further $250,000 in development services performed by MyFiziq.
These funds are expected to be received from BCT no later than July 24, 2020.
MyFiziq and BCT continue to collaborate
BCT is continuing to work with MyFiziq to further develop and commercialise the application for the medical and insurance sectors, allowing an up-to-date record of the patient’s body shape and body composition to be directly available to the participant and to their medical practitioner’s or insurer’s records.
BCT has deployed its first commercial partner in Hong Kong with The CareVoice.
This release is the first BCT platform using the MyFiziq body shape and circumference system and will soon be enhanced with the group’s new total body fat capabilities.
The primary goal is for this technology to replace the out of date Body Mass Index (BMI) as a measure of an individual’s body composition for the medical, health and life insurance sectors.
BCT has advanced its capabilities significantly over the past 3 years, with the addition of risk indication calculations and chronic disease identification, total body fat and the adoption of World Health Organisation and International Diabetes Federation parameters.
These measures have been adapted and embedded into the process of evaluation within the platform.
Access to BCT’s technology and these early indicators of risk will offer insurers and healthcare providers a more accurate understanding of how their policy holders are trending with their body weight and composition, which directly correlates to their management and risk of developing chronic health conditions.
BCT has continued advancing commercial activities with over 150 healthcare and insurance providers engaged in commercial discussions, application evaluation and testing.
Improved chances of NASDAQ listing
Commenting on these developments and their significance in terms of MyFiziq’s aim to list on the NASDAQ, chief executive Vlado Bosanac said, “With board support, it was agreed that taking a majority stake in BCT was strategically an advantage and well-positioned for both companies whilst firming up BCT’s balance sheet.
‘’Additionally, with our current NASDAQ initiative, I believe this will be well received by US investors and potentially a catalyst for an increase in our NASDAQ valuation.
‘’The terms we have negotiated are favourable as we are investing at the same valuation the original Gold Quay investors invested some 3 years ago.
‘’Furthermore, the increase to $6 million dollars on the anti-dilution position for MYQ is a very positive outcome, further protecting our interest in BCT and its growth.
‘’MyFiziq has also retained the right to participate in future capital raisings to maintain our stake in BCT.”