ASX tech share Advanced Human Imaging share price frozen after rocketing 96%

ASX tech shares are broadly enjoying a good run today.

While the All Ordinaries Index (ASX: XAO) is up a respectable 0.64% in mid-afternoon trading, the S&P/ASX All Technology Index (ASX: XTX) has gained more than twice that much, up 1.4%.

But that’s chicken feed compared to the 96% gain posted by human imaging company Advanced Human Imaging Ltd (ASX: AHI).

The ASX tech share leapt higher on open and kept marching to 24.5 cents until entering a trading halt this afternoon.

In an announcement to the ASX, Advanced Human Imaging said: “The Company requests a trading halt immediately, in response to the ASX pricing letter dated 30 August 2022 and pending the release of an announcement in relation to a material acquisition.”

What’s spurring investor interest?

The Advanced Human Imaging share price closed flat at 12.5 cents yesterday after releasing a non-price sensitive announcement before market open.

The ASX tech share updated the market on the completion of its Master Services Agreement (MSA) with Estonia-based digital health provider Activate Health OÜ.

According to the release, Activate Health has built the world’s first AI-driven digital therapeutics platform for metabolic syndrome. Their technology has now been integrated with Advanced Human Imaging’s MultiScan SDKs to identify early indications of chronic disease risk.

The company said Activate Health will purchase a block of 4,000 of its FaceScans and a block of 4,000 BodyScans for €22,960 (AU$33,330).

Commenting on the MSA, strategy lead of Advanced Human Imaging Vlado Bosanac said:

The combination of the AHI solution will provide a far deeper insight of the users within the Activate digital therapeutics platform. The AHI solution will empower the Activate platform with the ability to identify chronic disease risk, for the early intervention, allowing Activate to intervene and assist their consumers with better health outcomes.

We are delighted to be involved with such an innovative company, based in the world’s leading digital health community, and look forward to making a positive impact on Europeans’ longevity of life, health and wellbeing.

In yesterday’s release, the ASX tech share noted that its AHI solution will launch in the Netherlands “in the coming weeks” with an update to “be provided once the product is launched by Activate”.

How has this ASX tech share been performing?

Despite its gains today, the Advanced Human Imaging share price remains down 73% year to date. Over the past 12 months, the ASX tech share is down an even more painful 82%.

Though you’re unlikely to hear investors who snapped up shares yesterday complaining.

The post ASX tech share Advanced Human Imaging share price frozen after rocketing 96% appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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