MyFiziq in $5m JV deal

ASX-listed app company MyFiziq has entered into a joint venture agreement with a Singaporean company for the development of a new diagnostic tool for the medical sector.

Perth-based MyFiziq will receive an initial $5 million of funding under the joint venture with Gold Quay Capital.

The venture, which will be equally owned by the parties, will work to develop a diagnostic tool to provide up-to-date records of a patient’s body composition, which can be directly uploaded to their medical practitioner’s or insurer’s records.

The goal is to replace out-of-date body mass index as a measure of an individual’s body composition.

“This joint venture shows real confidence in our world-leading technology that has been developing here in Western Australia,” MyFiziq chief executive Vlado Bosanac said.

“Our team is very focused on delivering our unique body shape tracking technology for the world of health and fitness.

“This joint venture gives our shareholders a foothold into another market, which we would like to enter but wouldn’t have the capital or team size to do so for several years, while we focus on our current market opportunities.”

Under the agreement, Gold Quay will provide an upfront licence payment of $1.5 million plus a further $2 million, which will be allocated to the joint venture.

MyFiziq will receive a further $500,000 licence payment when the balance of the $1.5 million is injected into the JV.

Shares in MyFiziq were 41.8 per cent higher to 7.8 cents each at the close of trade.