Next Investors logo grey

MyFiziq raises capital at significant premium to recent trading levels


Published 14-OCT-2020 10:15 A.M.


4 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

MyFiziq Limited (ASX: MYQ) has received firm commitments to raise $5 million from institutional and sophisticated investors, allowing management to continue the group’s rapid expansion through internal operational initiatives and providing assistance to partners in bringing collaborative products to market.

This comes ahead of a proposed NASDAQ IPO and other strategic investment opportunities that remain in the pipeline, but will not be the subject of capital investment from this raising.

The capital raising will be completed through the issue of shares at $1.20 each, together with a 1:1 free option with a strike price of $1.60 and a 3-year expiry date.

Commenting on this development, chief executive Vlado Bosanac said, “I am very pleased with the support we have received for the placement.

‘’We worked closely with Evolution Capital and the list of institutional and high net worth investors they brought to the table.

The offer closed substantially oversubscribed, demonstrating significant investor interest in the company.

‘’With the current partner rollouts underway and MyFiziq starting to generate revenue, we are now in a position where the company is unlikely to need additional capital outside of any strategic investment opportunities currently being considered or the proposed NASDAQ listing.

‘’This new capital will assist the company in more rapid expansion of our team and the ability to assist our partners in expediting their go to market timelines.”

Strike price represents 330% premium to August share price

It is worth noting that MyFiziq’s shares were trading at 28 cents two months ago, indicating that the strike price for the capital raising represents a 330% premium to its share price in August.

MyFiziq’s ability to complete a heavily oversubscribed capital raising at a premium price is an endorsement of both the company’s operational future and management’s ability to continue to successfully execute on its growth initiatives.

One only has to consider the amount of merger and acquisition activity occurring within MyFiziq’s specific area of activity, in particular the $559 billion telehealth industry to appreciate the wealth of opportunities that should present themselves in the near to medium-term.

Consequently, it appears to be an astute move by management to remain on the front foot in positioning the group to engage in its own corporate initiatives, including the collaboration with players in adjacent industries, something that has been a hallmark of the group’s success in 2020.

The following graphic shows the intense activity in the industry, and whether MyFiziq emerges as a suitor or a target, one can only expect that the outcome will be financially beneficial.

39 - myq

COVID-19 isolation has fuelled retail trading on a global scale.

There has been a strong focus on companies that provide stay-at-home type services such as Amazon (NASDAQ: AMZN) - its shares have increased from about US$1600 to a high of US$3550 in the last 12 months with the majority of those gains occurring since the emergence of COVID-19.

MyFiziq benefits from similar activity as it allows users who are exercising in their homes to track their progress on a smartphone.

With limitations regarding travel outside the home and many gyms closed, this has become an important offering at a time when even day-to-day activities such as exercising while travelling to work and shops for example is prohibited.

Such has been the interest in MyFiziq that its shares have increased from about 7 cents six months ago when the impact of coronavirus first became evident to Friday’s closing price prior to the capital raising of $1.36, making it an overnight 20-bagger.

But Bosanac has proven his ability to continually identify new opportunities, and it wouldn’t be surprising to see further upside in the near term.

Furthermore, should the company progressed with its intention to list on the NASDAQ this would open up additional access to capital markets, as well as increasing the group’s profile.

Consequently, numerous share price catalysts are in play and MyFiziq very much remains a ‘’watch this space’’ stock.

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.