New deal could give MYQ access to approximately 60 million end users
MyFiziq Limited (ASX: MYQ) today announced it has signed a binding term sheet with The Original Fit Factory Ltd, a UK based technology company that has developed a flexible and at home health and fitness platform for both end users and B2B partners.
Known as TRUCONNECT, The Original Fit Factory Ltd app, is a world-leading app tackling fitness and mental health, available in 71 countries, across 7 continents.
The app is available for Apple and Android smartphones.
At its essence, it a digital workout tool that provides all-level workouts, enabling users to workout whenever and wherever they want.
MYQ is collaborating with The Original Fit Factory to integrate MyFiziq’s body tracking application into The Original Fit Factory’s B2C and white label B2B offerings across fitness and wellbeing, medical, corporate wellness, and insurance sectors.
David Weir, CEO and Founder of The Original Fit Factory said: “I believe we are building the world’s best online wellness community, and a key part of our value proposition is our focus on the individual, which is why all of our programmes are designed to be motivational and adaptable, with modifications available to suit all skill levels, that individuals can access to workout whenever they want, and wherever they are.
“MyFiziq’s technology furthers our vision to be the best online wellness community globally as it enables us to provide our users with the capability to capture and track their body composition and dimensional changes in-line with our TRUCONNECT programs through the TRUCONNECT application, in 71 countries, across 7 continents from anywhere they are, be it at work, home, or the gym.”
The Original Fit Factory has access to approximately 60 million end users globally across these sectors.
Initial integration is set to commence immediately and will be ready for people who may need assistance with their new year fitness and wellbeing resolutions.
Under the terms of the binding terms sheet, a market ready iteration is expected to be rolled out by 31 January 2021.
The companies have also agreed to conclude all formal agreements within 60 days of signing the binding terms sheet.
Terms of the agreement will see The Original Fit Factory use best endeavours to deliver a minimum of 1,000,000 active users within the first 12 months of launch.
“Industries globally have been forced to fast track their digital transformations due to COVID-19 and a visible requirement in remote access for consumers,” MYQ CEO Vlado Bosanac said.
“The health and fitness industry is no exception, with many gym chains, and early digital providers adapting their flexibility to end users to meet the unique situation COVID-19 has created and the growing adoption of remote training and activities. David and his team at The Original Fit Factory, with their focus on providing flexibility to individual, are leading the digital innovation curve as evidenced by their recently reported user growth to 2 million users, with projections to reach 5 million users on their platforms2 in 2021.
“The UK is currently recording only 15 – 17% of the population participating in gym or fitness classes. I am pleased to be working with David and The Original Fit Factory team to provide flexible health and fitness program options to the other 83 – 85% of the population. Allowing them to not only reach their goals but to track them using our technology. I urge our shareholders to look at the links we have provided to understand the depth and validity of the TRUCONNECT platform.”
The deal is expected to generate licence and other fees, however when this may occur is yet to be forecast.
MYQ continues to forge a path forward
MYQ is finishing the year with a bang.
The company has enjoyed fast-tracked growth since April through the uptake of its impressive technology.
In just over 6 months, MYQ’s share price has risen 1100% from 12.5c to a high over $1.50 just last month. MYQ is currently trading at 96.5c (19/11/2020) and the company has a market capitalisation of $111.9M.
This growth is, in part, due to the health sector’s adoption of digital healthcare technology.
Major 2020 healthcare trends include telehealth, wearable health sensors and trackers, AI health intelligence and personalised mobile apps are all heavily related to MYQ’s distinctive product offering and capabilities.
The uptake of this offering in this climate has been impressive.
Since April, MyFiziq has announced over 10 partnerships, not including today’s.
Perhaps the most significant out of their many partnerships this year was the announcement on 5 October of a binding term sheet with Nexus-Vita Pte Ltd, a Singapore-based health monitoring and management technology company.
The deal will give MYQ annual recurring revenue of US$3.58M (AU$5M), signifying a company-making milestone in MYQ’s evolution and ability to generate material revenues going forward.
These agreements all strengthen MYQ’s position as a NASDAQ listing draws closer.
A dual NASDAQ listing will open up a huge market segment to this health tech provider, and a much bigger capital market in the US compared to the ASX.
Read more about the NASDAQ listing: NASDAQ Listing a Step Closer as MYQ Secures $5M to Forge Forward