Myfiziq Enters An Agreement With WeSure To Expand In China
Myfiziq (ASX: MYQ) is a health and fitness technology and analytical data business. It provides to its partners proprietary software development kits (SDK) which they can embed into their existing apps. The primary data, Myfiziq, helps to collect is the body measurement from the pictures clicked from the user’s smartphone, which is then converted into a 3D representation with accurate circumference measurements. This data is claimed to be more accurate than traditional tape measuring methods.
Body Composition Technologies Pte Ltd (BCT) is a 50% owned joint venture with Myfiziq and is working on assisting global medical and insurance sector by developing cost-effective, reliable and smartphone-based body composition and anthropometric measurement tool.
On 4th March 2019, Myfiziq announced, along with the BCT, that they have entered into a binding agreement with China-based WeSure Limited, which is Tencent's insurance platform. Under the agreement, each of the companies will be assessing the implementation and best user engagement protocols to allow the WeSure and newly developed WeFit application’s subscribers access to the technology related to insurance, wellness, fitness which will include activities like health monitoring, underwriting etc. The collaboration of this agreement has three phases including testing, validation in China, and commercialization.
The financial outlook has not been measured yet. Therefore, the financial impact of this agreement is not known as of now. However, under the terms of the framework agreement, the right to negotiate on commercial terms exclusivity to Mainland China was requested by WeSure to which both MYQ and BCT have granted the right, which will be subjected to commercial terms being agreed at the appropriate time.
Under the agreement, WeSure will be providing high-quality insurance services to its users by affiliating with well-known domestic insurance companies. These services will include purchasing, enquiring and settling claims on the life service platforms of WeChat and QQ.
WeSure has the connections and large data capability of the Tencent platform which is focused on selecting cost-effective insurance products (out of many available options) for its users with exclusive value-added services. In a nutshell, the company is committed to using this platform to make insurance simpler, fashionable and more fun.
Using MYQ/BCT technology in its offering, WeSure is betting high on ever-growing diabetic and pre-diabetic population throughout China and intends to help its current and potential customers understand the risk they pose to their own health. The key differentiator for the company is their WeFit reward program which incentivises customers to live healthily with their technology to track one's health and fitness for accelerating on-line underwriting and engagement.
Before the opening of market on 28th February 2019, in accordance of Listing Rule 17.1, Myfiziq requested to immediately halt the trading of its securities on ASX stating the pending release of an announcement regarding a commercial arrangement with a China-based insurance and wellness platform which is material to the company. The shares of Myfiziq resumed trading today (4 March 2019) on ASX.
On 4th March 2019, the stock opened quite high around A$0.41 but lost all the opening gain (as of AEST: 3:40 PM) and is trading 1.41% down at A$0.35. The stock has given a YTD return of 12.70% as of 27 February 2019.
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