What’s with the Advanced Human Imaging (ASX:AHI) share price today?

The Advanced Human Imaging Ltd (ASX: AHI) share price has had a clanger today, falling mroe than 4%. Here’s what might be bothering investors

| More on:
A businessman holds his glasses in concern, indicating uncertainly in the ASX share price

Image source: Getty Images

The S&P/ASX 200 Index (ASX: XJO) is not having a great day, as you might have gathered by now. At the time of writing, the ASX 200 is down 0.29% to 6,997 points. This comes after falling as much as 1.5% earlier in the trading day.

But one company that has faired a little worse than the ASX 200 today is Advanced Human Imaging Ltd (ASX: AHI). Advance Human Imaging shares are currently down 4.42% to $1.73 a share. At this price, Advanced Human Imaging is now down ~13% over the week so far. And more than 20% from the all-time high of $2.19 that we saw the company make back on 3 March.

However, if we zoom out, the picture is a little rosier. Year to date, Advanced Human Imaging is still up more than 36%. Since 3 February, it’s up close to 72%. And, over the past year, the company has enjoyed gains of 930%.

But what about today?

Why is the Advanced Human Imaging share price falling today?

Well, as of Monday, Advanced Human Imaging has just emerged from a ~3-week trading halt. That halt was partly sparked by an ASX speeding ticket from 30 March, and partly for a “subsequent announcement to the market in relation to a material potential acquisition”.

Well, on Monday we learned that that ‘material potential acquisition’ was the Israel-based Physimax Technologies. As my Fool colleague Brooke reported at the time, Advanced Human Imaging has offered to purchase Physimax through a letter of intent for US$6 million worth of its shares. It has also agreed to issue a further US$2 million worth of shares through “an earn-out agreement to be shared with key employees on terms to be agreed”.

On the same day, Advanced Human Imaging also announced that it had signed a licensing and subscription agreement with Triage Technologies, a Canadian company. Advanced Human Imaginghas already paid US$600,000 of the US$3 million that the deal encompasses. It will allow Advanced Human Imaging to use Triage’s AI systems to identify skin conditions. Under the deal, the company will also receive an equity stake in Triage as well.

Some other news

Further, we also got some more news out of Advanced Human Imaging today. The company made an announcement this morning.

This outlined the upcoming launch of the Original Fit Factory Ltd app Truconnect, which is integrated with Advanced Human Imaging technology. This “worldleading app tackling fitness and mental health” is now available on iOS in 71 countries, and will be available on the Andriod Google Play store on 26 April if all goes to plan.

So it’s not entirely clear which of these announcements is spooking investors today (and this week). But the net effect on investors has evidently been one of concern.

At the current share price, Advanced Human Imaging has a market capitalisation of $233 million.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers