Twenty-bagger MyFiziq punches above its weight with Floyd Mayweather deal
Health & Biotech
Health & Biotech
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MyFiziq is one of the year’s biggest ASX small cap successes — gaining more than 2000 per cent in a few months.
Now the body image app hopes it can continue its record run via a partnership with outspoken American boxer Floyd Mayweather.
The MyFiziq app, which tracks a user’s body changes using a phone camera, will be integrated into the boxer’s app Mayweather Boxing and Fitness program.
The shares (ASX:MYQ) have surged from 4c in mid-October to highs of 94c on Wednesday — before settling to 88c at yesterday’s close — a one-day gain of 10 per cent.
MyFiziq hopes to leverage the boxer’s 41 million social media followers as targets for its app.
“I am extremely excited to align our technology with this new application and the Mayweather brand,” MyFiziq chief Vlado Bosanac told investors.
“Floyd is a powerhouse in the boxing and business world and we are looking forward to being exposed to his extraordinary social reach.”
“At this stage the company is unable to quantify the impact of this partnership on its revenues however it is very encouraged by the opportunity to be associated with Floyd Mayweather and his 41 million strong social media following.
“This sort of exposure could be a game-changer for MyFiziq and even a 1 per cent penetration rate would be a great outcome.”
The app claims up to 97 per cent accuracy in measuring the circumference of a user’s chest, waist, hips and mid-thigh.
Unlike a standardised Body Mass Index (BMI) test, the app offers a broader picture of health including details that make it useful to life and health insurance providers.
So far MyFiziq has banked no revenue from app users, but has made $2 million from licensing payments in the past 2 months, from joint venture partner Body Composition Technologies as it works to create a ‘revolutionary diagnostic tool for the medical sector’.
In the last quarter MyFiziq’s operating expenditure jumped to $971,000, leaving just $180,000 in cash.
A loan facility and R&D rebate left it with $2.7 million in available funds at the time, but they’ve since received a further $2 million in licence payments and R&D reimbursements.