Micro-X Ltd has announced a $6 million capital raising alongside a $2.4 million strategic investment from Billion Prima, underpinning its pivot towards medical imaging and cashflow stability.
- $6 million capital raising via placement and entitlement offer at 7 cents per share
- Additional $2.4 million strategic investment from Billion Prima at 9 cents per share
- Strategic refocus on medical imaging and monetisation of security applications
- Pro forma cash position of $10.35 million post-raising and investment
- Key projects include Rover Plus trials and ARPA-H funded Full Body CT development
Capital Raising to Support Strategic Pivot
Micro-X Ltd (ASX:MX1), an Australian innovator in cold cathode X-ray technology, has announced a $6 million capital raising to fund its renewed strategic focus on medical imaging. The raising comprises a $2 million placement to professional investors and a $4 million 1-for-10 accelerated entitlement offer to existing shareholders, both priced at 7 cents per share. This initiative follows a $2.4 million strategic investment by Malaysian security technology firm Billion Prima at a premium price of 9 cents per share.
The capital injection aims to bridge Micro-X to cashflow stability while advancing its portfolio of mobile X-ray and CT products, including the Rover Plus and the development of a full-body CT scanner under a significant ARPA-H contract.
Strategic Partnership with Billion Prima
Billion Prima’s $2.4 million equity investment, representing approximately 4.4% ownership pre-raising, is part of a broader $5.6 million partnership to commercialise Micro-X’s security screening technology in Southeast Asia. This partnership not only provides immediate capital but also validates the value of Micro-X’s proprietary CNT X-ray technology, particularly in baggage and parcel scanning markets.
Micro-X plans to monetise its security applications through such strategic partnerships, allowing it to concentrate resources on its medical imaging ambitions.
Focused Medical Imaging Strategy
The company is narrowing its focus to medical imaging, discontinuing its Argus operations to achieve material cost savings. This pivot is supported by a $25 million non-dilutive ARPA-H contract to develop a lightweight, rugged full-body CT scanner, building on its successful Head CT prototype designed for rapid stroke diagnosis in ambulances.
Micro-X’s patented NEX technology platform offers a smaller, more portable, and cost-effective alternative to traditional CT systems, targeting a global CT market valued at US$7.4 billion with over 375 million scans annually.
Operational and Financial Outlook
Post-raising, Micro-X expects to hold approximately $10.35 million in pro forma cash, providing a runway to fund commercial activities, product development, regulatory approvals, and working capital through FY2026. Directors and key management are participating in the raising, signaling confidence in the company’s strategy.
Micro-X is also advancing commercial discussions for its Rover Plus mobile X-ray system, currently undergoing evaluation by a major US hospital group, and exploring further partnerships to commercialise its medical CT products globally.
Risks and Market Position
While Micro-X’s technology offers compelling advantages, the company faces typical early-stage commercialisation risks, including regulatory hurdles, competition from established players, and execution risks in scaling manufacturing and sales. The strategic partnership with Billion Prima and the capital raising are critical steps to mitigate funding risks and accelerate market entry.
Micro-X’s vertically integrated manufacturing in Adelaide and expanding US presence position it well to capitalise on growing demand for portable, high-quality medical imaging solutions.
Bottom Line?
Micro-X’s capital raise and strategic partnership mark a decisive step in its transformation into a focused medical imaging innovator, but execution risks remain as it scales.
Questions in the middle?
- Will Micro-X secure additional strategic partnerships to monetise its security technology beyond Billion Prima?
- How will the upcoming human imaging trials for Head CT influence regulatory approvals and commercial adoption?
- Can Micro-X accelerate sales growth of Rover Plus to achieve sustainable cashflow without further dilution?