- MyFiziq (MYQ) has entered a funding agreement with Bearn, which runs an app that allows its customers to earn money while working out
- MYQ has agreed to lend Bearn, a previous partner, US$500,000 (around A$645,000) to help expand the app's platform capacity
- In return, Bearn has promised to deliver MyFiziq one million active monthly users within a year or the loan is repayable with increasing interest
- The founder of Bearn has pledged his 88 per cent ownership in the company as security for the loan, as well as the app's software
- MyFiziq's body scanning tech has already been integrated with the app, which has 56 million pre-registered users
- Shares in MYQ are down a slight 1.26 per cent at $1.18 each
Body scanning specialist MyFiziq (MYQ) has entered a new funding agreement with U.S. app creator Bearn.
The two companies have worked together before on Bearn's app, which essentially allows users to earn money while working out.
Under this latest funding agreement, MyFiziq has agreed to lend Bearn US$500,000 (around A$645,000).
The app founder had advised MYQ that running a campaign for the 56 million pre-registrations it's received to date "would not be possible based on the existing specifications of the Bearn platform."
As a result, MyFiziq has agreed to loan Bearn the cash to help it expand the app's platform capacity.
In return, Bearn has promised to deliver MYQ one million active monthly users within a year or the loan is repayable in 15 months with increasing interest.
Under the agreement, MYQ will also receive US$2 per scan (about A$2.58) undertaken by each user or an annual fee of US$47.88 (roughly A$61.80).
The founder of Bearn, Aaron Drew, has pledged his 88 per cent ownership in the company as security for the loan, as well as the app's software.
"Bearn is a great company, and it was roadblocked due to the U.S. COVID lockdowns and inability to roadshow and source new capital. I saw this as an opportunity to work with an already established partner and to enable Bearn to reach our joint goals," MyFiziq CEO Vlado Bosanac said.
"The launch of new improved Bearn app has been targeted for April 2021, giving Bearn ample time to make the platform improvements and engage the marketing campaign for the onboarding process," Vlado added.
MyFiziq's body scanning tech has already been integrated with the Bearn app under past agreements between the two parties.
Shares in MYQ are down a slight 1.26 per cent at $1.18 each at 1:40 pm AEDT.