MySizeID's (Nasdaq:MYSZ; TASE:MYSZ) share price was down 14% on Nasdaq yesterday, after the company announced that it had completed a $2.5 million private placement at a 22% discount on the market price. MySizeID, which has developed a personal measuring app for smartphones, now has a market cap of only $13 million, following an 87% drop in its share price over the past year. The financing round was through the Roth Capital investment bank, and the investors were US financial institutions. MySizeID, which had only $14,000 cash at the end of the third quarter, raised $1.3 million at the beginning of the fourth quarter.
Half of the earlier financing round, also conducted through Roth Capital, consisted of short-term debt that must be repaid within four months or immediately after a share offering. Part of the proceeds of the new round is therefore earmarked for repaying the debt from October, and MySizeID will repay $667,000. The company must also pay Roth Capital 7% of the proceeds ($174,000) and other expenses incurred in the current round, as well as $120,000 in expenses from the October round.
MySizeID chairperson Eli Walles said, "The company will use most of the money raised now for business development, marketing, and sales, and no less importantly, to help us meet Nasdaq's requirements for being listed on it."
Nasdaq's management notified MySizeID six months ago that it was not meeting the $35 million minimum market cap for being listed. The company was given 180 days to meet the condition, but it failed to do so, and Nasdaq recently announced its delisting. Following an appeal filed by MySizeID, a date in January was set for a hearing, and the share has meanwhile not been delisted.
MySizeID, controlled by Shoshana Zigdon, Ronen Luzon, and Yisrael Levi, has developed a app for measuring people using a mobile phone in order to make it easier to buy clothes online.
"Globes": Where are you in development and marketing for the app?
Walles: "We have various verticals. In clothing, we have a body-measuring product for buying clothes online, and we have done integration with a pilot customer, Trucco. We will present the body-measuring product at the CES exhibition in January. We have a delivery product that measures the volume of packages; we have a pilot with Katz Deliveries for this product, which is being used in the company's logistics center. With the help of our technology, they expect their profit to grow 10% this year. We're continuing development of this product.
"We also have a vertical in which we don't have a pilot yet, but in which we see great potential: do-it-yourself furniture. A person can measure a space in his or her home and get a closet to fit exactly. It's a huge market."
When do you expect to go from pilots to commercial sales?
"I can't give you a clear timetable, but there is definitely interest. We're getting a lot of calls, and are also paying attention to requests for adjustments. We're constantly interacting, and hope that it will happen soon."
Published by Globes [online], Israel Business News - www.globes-online.com - on December 21, 2017
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