Why the MyFiziq (ASX:MYQ) share price is falling today

The MyFiziq Ltd (ASX: MYQ) share price has dropped 2.22% today following the release of an update for its cash inflows.

| More on:
Young investor watching share chart in anticipation

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The MyFiziq Ltd (ASX: MYQ) share price has fallen lower today following the release of an update for its cash inflows.

At the time of writing, the software company's shares are down 2.22% to $1.32. In comparison, the All Ordinaries Index (ASX: XAO) is flat at 6,413 points.

Strong inflow of funding and payments

MyFiziq updated the market with an overview of its funding and payments for the past few months. Here is a breakdown of its latest developments.

As announced earlier this week, MyFiziq has received firm commitments to raise $5 million from an oversubscribed capital raising.

On June 1, MyFiziq entered a convertible note funding agreement with Asia Cornerstone Asset Management (ACAM). Under the agreement, MyFiziq was due to receive US$1.5 million in four tranches. So far, three of these tranches have been received with a value of US$1.125 million.

Within the agreement, ACAM advised it won't be taking up the final tranche of convertible notes. However, to satisfy the deed, ACAM will subscribe iConcept Global Growth Fund (IGGF) to the notes. IGGF paid the remaining balance of US$375,000.

In addition, IGGF subscribed for $332,500 worth of shares in Body Composition Technologies (BCT) as part of a second tranche of financing. MyFiziq said it received funds this week with a licence payment from BCT of $121,794 and development revenues of $70,706.

On a closing note, MyFiziq stated the Australian Taxation Office reimbursed $784,412 from its R&D projects. The company said this was the largest refund to date and will seek to focus on its strategic developments.

What did the CEO say?

MyFiziq CEO, Vlado Bosanac said:

The week has closed out on a very positive note, with a $5,000,000 oversubscribed capital raising, which was enhanced with additional inflows from our US NASDAQ funding initiative, A TO R&D reimbursements, a license payment from BCT and other partner revenues.

These additional inflows resulted in a further $1,504,977 in funding to the company. I am pleased to say the company is in the best financial position it has been in for the past few years, with ample capital to accelerate growth and execute on our NASDAQ initiatives.

MyFiziq share price summary

The MyFiziq share price has been on tear since August, after announcing a raft of positive agreements and term sheets. This propelled its shares from 28 cents to now $1.34, representing a gain of 380% for shareholders. At a market capitalisation of $154 million, MyFiziq has been accelerating its growth strategy to become a market leader in its field.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A woman presenting company news to investors looks back at the camera and smiles.
Broker Notes

Up 110% in 12 months: Why this ASX 200 stock can keep flying

Let's see what Bell Potter is saying about this high-flyer.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A young female investor with brown curly hair and wearing a yellow top and glasses sits at her desk using her calculator to work out how much her ASX dividend shares will pay this year
Opinions

Why I'm still investing in ASX shares during tariff uncertainty

There are a few reasons why I plan to continue investing even during uncertainty.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Imricor, Imugene, Newmont, and Pepper Money shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Droneshield, Meteoric Resources, Mount Gibson, and Tyro shares are charging higher

These shares are having a good time on hump day. But why?

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Share Market News

Does this broker prefer Treasury Wine or A2 Milk shares?

These consumer staples companies are comparable in size but not in upside according to this broker. 

Read more »

Broker looking at the share price.
Share Market News

5 things to watch on the ASX 200 on Wednesday

The Australian share market looks set to give back yesterday's gains.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Opinions

Why I'm buying more of these 2 ASX stocks ahead of earnings season

I've been excited about buying these investments.

Read more »