The Advanced Human Imaging Ltd (ASX: AHI) share price has plummeted today after the company released a commercial agreement with e-Mersion Media.
Advanced Human Imaging shares are down 8.19% to $1.07 at the close of trade today, against a huge 12-month return of 610%. Let's see why the smartphone-based human scanning technology producer has been wobbling lately.
Advanced Human Imaging deal
In today's release, Advanced Human Imaging advised it has just signed a binding term sheet, which is an informal pre-contractual agreement, with e-Mersion Media.
e-Mersion Media is a Melbourne company that specialises in providing digitisation capabilities to print magazines. It focuses on increasing magazine engagement through interactive touch and videography.
The deal will allow Advanced Human Imaging to spruik its technology through e-Mersion's digital portal, utilising the company's audio, video and other engagement capabilities.
e-Mersion will advertise Advanced Human Imaging's body scanning services to highly targeted customers through its digital magazines.
Advanced Human Imaging's report says that e-Mersion publications "have the potential to reach millions of consumers every month via channels they operate within and clients they service".
Management comments
Advanced Human Imaging CEO Vlado Bosanac spoke about the company's thought process, saying:
When I met the guys from e-Mersion, they shared with me their digital publication platform. My immediate thought was its just a hybrid version of Kindle. When they demonstrated an interactive magazine they had enhanced, it could not have been further from what I was thinking.
I was floored by the level of interaction and how the content was a combination of touch, video, and sound. I can see people interacting with this enhanced magazine technology and using their in-device camera empowered with our technology to have a health check or simply size a garment before they order right there in the magazine.
Advanced Human Imaging share price snapshot
It seems the company's investors have not been as excited by the deal as its CEO. The Advanced Human Imaging share price has fallen by an incredible 70 cents (46% of its value) in just 13 days since the end of April.
Advanced Human Imaging shares fell by a similar margin just seven days ago on news of a similar tech partnership with Discovery subsidiary Vitality.
