Coming off a trading halt yesterday, Myfiziq Limited [ASX:MYQ] has tacked on 57.9% to its share price today, up 16.5 cents, to trade at 45 cents per share.
MYQ is a software company which has developed a software that converts photos of the human body into 3D image known as a Personal Avatar.
The representation is accurate in circumference and all measurements and has application in the fitness, insurance and medical industries, which all need and use such data.
What caused Myfiziq’s share price to soar?
Having requested a trading halt yesterday pending an announcement, Myfiziq gave notice this morning it had completed $6 million in capital raising with a private investor.
MYQ announced it had completed a binding term sheet to complete the capital raising with Asia Cornerstone Asset Management. ACAM makes investments in the Asia Pacific and ASEAN region. The firm focuses only on companies that are deemed to command a high growth potential and have a strong management track record.
As part of the agreement, MYQ will issue a total of 10 million fully paid shares in MYQ at A$0.60 cents per share — a 110% premium to the current share price.
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The deal will see ACAM represent a 10.67% holding in Myfiziq on an undiluted basis.
CEO of Myfiziq Vlado Bosanac said ACAM is the right investor for the company:
‘We have been courted over the past few months by a number of parties offering to inject capital into MyFiziq. Our main resistance has been finding the right partner with more than just capital but also significant investor and industry support.
‘[ACAM] has an extensive background in the capital markets and brings a large following from his own investment community and business leaders. This capital represents a significant up lift to our shareholders and the current market and also reflects Dato Liew’s confidence in our technology and the team.’
Is 2019 looking up for Myfiziq?
For shareholders of MYQ last year would rather be forgotten. After hitting its peak of $1.47 back in January of 2018, MYQ has since made a loss of over 69% over the past 12 months.
Extreme hikes in share price is not uncommon for MYQ. From October 2017 to January 2018, the share price soared more than 3000%.
MYQ say the capital raised from ACAM will fund its growth and strategic rollout plans.
Based on current budgeting, the company said that the funding will be sufficient working capital for the company to undertake the rollout and expansion of its technology, and required increases in its development team for the next two years.
Myfiziq was successful securing partners for its technology throughout 2018, as well as announcing a number of platform launches and patents within the Asia region.
The company says it is currently in talks with close to 200 organisations to ramp up its technology’s global reach.
For Money Morning
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