Advanced Human Imaging Ltd (ASX: AHI) shares have been up and down today following news of a signed marketing agreement. The Advanced Human Imaging share price opened slightly higher following the news before slumping 3.35% to $1.73.
However, at the time of writing, the company's shares have recovered to trade at $1.82, up 1.68% for the day so far.
Image source: Getty Images
What did Advanced Human Imaging announce?
Advanced Human Imaging shares are on a rollercoaster today after the company advised it has entered into a marketing agreement with China-Based, Tinjoy Biotech (Tinjoy).
The partnership will see Advanced Human Imaging's CompleteScan product integrate with Tinjoy's WinScan app in China. Launch of the combined offering is being targeted for July 2021.
Brought to market in 2020, Tinjoy's WinScan app services roughly 28 million consumers every month in China. The digital health platform specialises in multiple segments of personal and population health as well as medical and preventative care. The company uses data analytics for the early detection and health assessment of individuals at risk of chronic disease.
Under the terms of the binding sheet, Advanced Human Imaging will contribute US$200,000 over three tranches. The funds will be used towards the training of 500 call centre team members to sell the CompleteScan integration. In addition, the remaining monies will be allocated towards material production and the launch of the CompleteScan integrated WinScan app.
Advanced Human Imaging is hoping to achieve 1 million active monthly users within the first year of the signed agreement.
Judging by today's Advanced Human Imaging share price moves, it seems investors have mixed feelings over the significance of the company's news.
What did management say?
Vlado Bosanac, chair and CEO of Advanced Human Imaging, commented:
Our teams have been in constant communications over the last 8 weeks progressing the application integration points. We are fortunate to have mandarin speaking staff that are able to navigate the language barrier seamlessly…
The sheer size of the population and the high level of mobile device usage in China, gives me tremendous confidence in the acceptance of our unique and easy to use technology. I believe this will culminate in a very successful partnership.
About the Advanced Human Imaging share price
Including today's gains, the Advanced Human Imaging share price has rallied by around 1,000% over the last 12 months. The company's shares are, however, still sitting below their 52-week high of $2.19 reached in March this year.
Advanced Human Imaging has a market capitalisation of around $238 million.
