MyFiziq increases stake in BCT and improves chances of NASDAQ listing

|

Published 20-JUL-2020 10:41 A.M.

|

3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

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The primary goal is for this technology to replace the out of date Body Mass Index (BMI) as a measure of an individual’s body composition for the medical, health and life insurance sectors.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.”



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X