- MyFiziq (MYQ) has successfully secured a $600,000 research and development advance from R&D Capital Partners
- The deal provides for an advance of up to 80 per cent of the company’s expected research and development tax rebate for 2020
- It will be supplied under a loan facility, which will then be repaid once MyFiziq receives its tax incentive from the Australian government
- The funds will be used to accelerate both product launches and the company's go-to-market strategy
- MyFiziq is currently up 6.67 per cent and shares are trading for 24 cents each
MyFiziq (MYQ) has successfully secured a $600,000 research and development advance from R&D Capital Partners.
Based in South Perth, the company embeds its proprietary technology into its partners' apps, which is then used to create a 3D representation of the user with accurate measurements drawn from stored photos.
The technology is capable of generating a 97 per cent accurate avatar, and caters to a wide variety of industries, including the health and fitness, insurance and medical sectors.
The deal with R&D Capital Partners, a specialist financier with a focus on Australian-based research and development activities, provides for an advance of up to 80 per cent of MyFiziq’s expected research and development tax rebate for 2020.
As a government initiative, the tax incentive is designed to encourage companies to undertake research and development programs that benefit Australia by providing a tax offset for eligible entities.
Under the terms of the agreement, the $600,000 advance has been issued to MyFiziq under a loan facility. This will then be repaid to R&D Capital Partners once the company receives the tax rebate, which is expected to occur in October.
The loan is subject to an interest rate of 1.5 per cent per month and includes an establishment fee of $4,500.
According to an update released on April 30, 2020, MyFiziq’s primary focus over the coming quarter will be on accelerating the launches of new partner product builds, as well as executing its go-to-market strategy. The funds will be used to facilitate these goals and bolster the company’s working capital balance.
Vlado Bosanac, CEO of MyFiziq, said the advance will be pivotal in progressing near-term growth.
"This week has been a major step forward for the company with the announcement of the company’s aspirations to dual list to the NASDAQ and the impending launch of the Evolt360 application on the Apple App Store.
"These additional funds will assist the company in growing its team to advance the build and release of partner platforms currently in queue," he added.
MyFiziq is currently up 6.67 per cent and shares are trading for 24 cents each at 10:04 am AEST.