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

The MyFiziq Ltd (ASX: MYQ) share price is on the move today after the company announced a new deal with a health and fitness company.

Daniel Ewing

Born in Edinburgh, Scotland, Daniel moved to the Gold Coast, Australia at age 11. Nine years later he is in his third year of University at Monash in Melbourne. While starting out in a Science Degree, Daniel realised it wasn’t for him and promptly transferred to Commerce where he has developed a passion for the stock market. When not studying, Daniel can be most often found at the beach thanks to a passion for surfing.

Published October 20, 2020 12:45 pm AEDT

The MyFiziq Ltd (ASX: MYQ) share price is on the move today after the company announced a new deal with health and fitness company MVMNT Inc.

The MyFiziq share price is currently trading 0.42% lower at a price of $1.19. In comparison, the All Ordinaries Index (ASX: XAO) has dropped 0.3% to 6414 points at the time of writing.

woman using tape measure to measure her waist size — Image source: Getty Images

MyFiziq completes new deal

The technology company announced a deal to integrate MyFiziq's body scanning technology into MVMNT's platform. MVMNT is the digital delivery arm of FitLab LLC and integrates fitness solutions with athletes and sport brands.

Under the agreement, MyFiziq's technology will be made available to all subscribers within MVMNT's branded digital training experiences. This includes some pretty impressive partners. For example, the first MVMNT partners to use the technology will include Floyd Mayweather Boxing and Fitness and McGregor Fast, by Conor McGregor. With a current combined Instagram reach of more than 50 million people globally, the deal is expected to boost value both in revenue and product awareness.

So how does MyFiziq get paid?

Under the terms of the agreement, MyFiziq will be paid on the following volume based pricing model.

If the number of active users is 999,999 or below, MyFiziq will make US$1.50 per month per user.
If the number of users is between 1 million and 3 million, the company will make US$1.00 per month per user
And, for any number higher than 3 million active users, MyFiziq will be paid US$0.80 per user.

Currently, the respective platforms have a combined user base of roughly 1.16 million active users per month.

However, it should be noted that where new opportunities arise, additional commercial contracts will be created. This creates the potential for more revenue.

What now for the MyFiziq share price

The MyFiziq share price has been wildly volatile in recent days, moving more than 7% in 4 of the last 5 trading days. This is likely in part due to its impending initial public offering (IPO) on the Nasdaq Composite (NASDAQ: .IXIC).

Shares in the info-tech company are trading at $1.18 at the time of writing.

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