- MyFiziq (MYQ) has received the second tranche payment of a US$1.5 million convertible note from Asia Cornerstone Asset Management (ACAM)
- The US$450,000 (approximately A$654,000) payment marks another funding milestone as the company seeks dual listing on the Nasdaq exchange
- The second tranche was triggered by the commencement of the U.S. Public Company Accounting Oversight Board audit — a significant step towards its Nasdaq goal
- It's been a busy quarter for MYQ, with progress made on a number of fronts and the company's cash flow and product rollout gathering momentum
- MyFiziq is down 5.4 per cent today, with shares trading for 26.5 cents each
Scanning tech company MyFiziq (MYQ) has received the second tranche payment of a US$1.5 million convertible note from Asia Cornerstone Asset Management.
The US$450,000 (approximately A$654,000) payment marks another funding milestone as the company seeks dual listing on the Nasdaq exchange.
A formal convertible note subscription deed was signed on June 1, showing Asia Cornerstone Asset Management's (ACAM) commitment and belief in MyFiziq's U.S. expansion plans.
The US$1.5 million (approximately A$2.18 million) funding will be paid in four tranches, subject to the attainment of milestones on the way to Nasdaq listing.
The funds will accrue 10 per cent per annum in interest, with interest being capitalised and also converted at the time of listing on the Nasdaq.
Shares will be issued at the greater of either a US$1 floor price, or a 25 per cent discount to the issue price at the time of listing.
If the Nasdaq listing falls through, MYQ will have six months to repay the capital.
The second tranche was triggered by the commencement of the Public Company Accounting Oversight Board audit — a significant step towards its Nasdaq goal.
End of year flurry
Aside from the Nasdaq progress, it's been a busy time for MyFiziq.
The company has reduced its debts, rolled out its tech in two new platforms, increased its cash flow and created operating efficiencies.
MyFiziq Chief Financial Officer, Steven Richards, says the company has successfully navigated a tough time for the market.
"Global turmoil over the past few months [...] has created a great deal of uncertainty with the capital markets and investors alike. I am pleased to say that MyFiziq has risen to the challenge, to finish with one of the company's best quarters since listing in 2015," Steven said.
"We are now set to produce a tremendous cash flow result over the current quarter: in addition, we have successfully reduced cash burn by 46 per cent, converted or redeemed all convertible noteholders and received over $600,000 in collectables from our joint venture partner, BCT," he added.
MyFiziq's tech is in demand amid the global health crisis, and 12 binding term sheets across five business verticals have helped advance the commercialisation of its operations.
The bottom line is showing the rewards, with an expected $500,000 in licence fees to be paid by BCT in the coming quarter, with $200,000 of that expected within days.
"All of these factors combine to not only strengthen our balance sheet, but also give the business the momentum it needs to ramp up its growth strategies and the pursue its primary objectives, which is to globalise the technology," Steven added.
With the company's U.S. foray looking ever-more promising, MyFiziq seems well on track for a big year ahead.
MyFiziq is down 5.4 per cent today, with shares trading for 26.5 cents each as at 12:30 pm AEST.