MyFiziq Limited (ASX: MYQ) (MyFiziq) is pleased to announce that it has entered into a ground-breaking Joint Venture (JV) with Gold Quay Capital Pte Ltd Singapore (GQC) worth an initial $5 million.
Under the JV, the parties will work together to develop and deliver a revolutionary diagnostic tool for the medical sector, allowing an up to date record of the patient's body composition to be directly uploaded to their medical practitioner's or insurers records.
The first application (app) to be developed using the MYQ technology will deliver body shape along with body fat estimates. The goal is for this technology to replace out of date body mass index (BMI) as a measure of an individual's body composition for the health and life insurance sector.
Access to such a technology will enable insurers to more accurately understand how their policy holders are trending with their body weight and composition, which directly correlates to their management and risk of developing chronic health conditions.
Preliminary discussions with the health sector have indicated a strong desire for such a technology to help monitor a policy holder's current health trends. The goal for the technology is to provide the insurers and also policy holders with a tool that will provide them with accurate and up-to-date feedback on their current and future health status.
Under the terms of the JV, GQC will, through its investor network, provide up to $5 million of funding to the joint venture. Of this, MyFiziq will receive an upfront license fee of $1.5 million with a further $2 million development capital being allocated to the JV for development of the new application. The JV will be owned 50% by GQC and 50% MyFiziq. MyFiziq will receive a further $500,000 in licence payment when the balance of the $1.5 million is injected into the JV.
Vlado Bosanac, CEO of MyFiziq, said: "This joint venture shows real confidence in our world leading technology that has been developing here in Western Australia. MyFiziq is making strong progress in the fitness industry, which is worth $700 billion a year.
"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 whilst we focus on our current market opportunities. We believe there is huge potential in the area of digital health with spending due to see remarkable growth of more than 35%, surpassing US$200 billion over the next seven years.
'This joint venture allows us to fast track into the digital health and medical sector with a dedicated team of experts and significant funding. We believe this is very exciting for our investors, insurance providers and ultimately for consumers worldwide."
Barry E. Dick, CEO of Gold Quay Capital said: 'We are excited to embark on this journey with MyFiziq and our investors. Unleashing the technology of the MyFiziq mobile platform, combined with cutting edge body composition technology, will revolutionise how insurers and health care organisations monitor an individual's health and put in place programs for early disease prevention.
Professor Tim Auckland of the School of Sport Science, Exercise and Health at The University of Western Australia, said:
"Being in the field of anthropometry and human measurement for over 25 years, I am impressed with the approach the new joint venture is taking in the area of body composition assessment.
"This technology represents a world-first measurement platform that has the potential to replace outdated measurements of body composition like BMI, as well as avoiding the analysis time, cost and radiation exposure of current medical imaging platforms such as MRI, CT scan and DXA.
'I am looking forward to working with the both joint venture parties in the development of this application, which is expected to be available as soon as Q4 2017."
Dr Cyril Donnelly, Non-Executive Director of MyFiziq, said: 'We are excited for the opportunity to work with a top 100 research University, and a world leading anthropometry researcher to see the development of this innovative medical imaging technology. Through this collaboration we have the ability to accelerate the development of a needed application that will replace outdated measures such as BMI."
All formal due diligence will be completed within 30 days with all funding already available. The parties have worked closely over the last 60 days and are on track to close by 4 July 2017. MyFiziq and GQC are looking forward to commencing their work together immediately upon closing of the due diligence.
Under the new joint venture, MyFiziq has already identified key executives to commence discussions with global health providers. MyFiziq will focus on building a robust technical team for the development of a novel smart phone application that will be developed for Q4 2017. The joint venture will undertake a development phase that will allow their technology to estimate body composition in addition to body circumference measures.
MyFiziq Limited (ASX: MYQ) equips users with the tools to track their personal progress towards their goals over time, whether that's fat loss, muscle gain, or maintaining their current physique.
MyFiziq adds science to this art to create a holistic approach to measuring, tracking, and most importantly, seeing changes to your body shape over time.
Body measurements provide more useful information about shape changes than simply measuring weight or BMI. But until now, body measurements have required a tape measure, creating a potential for error.
MyFiziq removes this margin of human error to help users keep track as they smash through limits and achieve their goals.
For more information please visit: www.myfiziq.com