MyFiziq has developed and patented a proprietary dimensioning technology that enables its users to check, track, and assess their dimension using only a smartphone privately and accurately.
BCT has been working with MyFiziq in a joint venture partnership to develop and commercialise the MyFiziq app for the medical and insurance sectors.
Development of the app will allow an up-to-date record of a 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 already deployed its first commercial partner. It launched this first consumer-facing insurance application with The CareVoice in Hong Kong. The CareVoice is a leading China-based health insurtech company dedicated to transforming the healthcare experience in Greater China.
The CareVoice will be furthering its position in the region by using this mobile and data-driven solution to digitalise healthcare services and enhance insurance procedures for many of China’s largest insurance companies.
The CareVoice is the first BCT platform using the MyFiziq body shape and circumference system and will soon be enhanced with MyFiziq’s new total body fat capabilities.
The primary goal is for the MyFiziq technology to replace out of date Body Mass Index (BMI) as a measure of an individual’s body composition for the medical, health and life insurance sectors.
The businesses are completely complementary, as BCT has advanced its capabilities significantly over the past three years. BCT has added 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 MyFiziq platform.
Access to BCT’s technology and these early indicators of risk will enable insurers and healthcare providers to develop a more accurate understanding of how their policy holders are trending with their body weight and composition. This 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.
MyFiziq’s majority stake
Given the complementary nature of the companies, it is no surprise MyFiziq has taken a majority stake.
The partnership between the two dates back to June 2017, when MyFiziq signed an incorporated joint venture agreement with Gold Quay Capital Pte Ltd in Singapore to form the following new joint venture companies: Body Composition Technologies (BCT) registered in Singapore (Pte Ltd) and Australia (Pty Ltd) as the investment vehicles and structure for the joint venture, both Internationally and in Australia.
Today, 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.
The convertible note has a two-year term at an interest rate of 2.5%.
Assisting the NASDAQ listing
“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,” CEO Vlado Bosanac said.
“The terms we have negotiated are favourable as we are investing at the same valuation the original Gold Quay investors invested some three years ago.
“Furthermore, the increase to $6,000,000 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.”
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.