Micro-X Targets $6M Capital Raise Including $2.4M Strategic Placement from Billion Prima

Micro-X’s Strategic Capital Raise

Micro-X Limited (ASX: MX1), an innovator in cold cathode carbon nanotube X-ray technology, has launched a retail entitlement offer targeting approximately A$2.7 million. This retail offer forms part of a larger A$6 million capital raising initiative aimed at underpinning the company’s strategic refocus on medical imaging products.

The capital raising package includes a $2 million institutional placement, a $1.3 million institutional entitlement offer, and a $2.4 million strategic placement by Billion Prima Sdn Bhd, a Malaysian security technology partner. Billion Prima’s investment, at a premium price of $0.09 per share, underscores confidence in Micro-X’s proprietary technology and its commercial potential.

Entitlement Offer Details and Shareholder Participation

The entitlement offer allows eligible retail shareholders in Australia and New Zealand to subscribe for 1 new share for every 10 shares held as of the record date (10 February 2025) at an issue price of $0.07 per share. The offer opens on 13 February and closes on 28 February 2025. Notably, the offer is non-renounceable, meaning entitlements cannot be traded or transferred, and shareholders who do not participate will face dilution of their holdings.

Micro-X’s board and key management have committed to participate in the institutional placement, subject to shareholder approval, signaling alignment with shareholder interests and confidence in the company’s strategic direction.

Funding Use and Business Outlook

The proceeds from the capital raising will be allocated primarily to advancing Micro-X’s medical imaging portfolio, including commercial activities, product support, and manufacturing of its mobile X-ray and CT products. Key projects include the Rover Plus mobile X-ray unit, which is in advanced evaluation stages with a major US hospital group, and the Head CT scanner designed for mobile stroke detection, with human imaging trials scheduled for 2025.

Additionally, the company is progressing design work on a next-generation Full Body CT scanner, supported by a significant non-dilutive funding contract of up to A$25 million from the US government’s ARPA-H agency. This funding is critical to Micro-X’s ambition to bring portable, cost-effective CT imaging solutions to market, addressing unmet needs in healthcare accessibility.

Strategic Partnerships and Operational Streamlining

Micro-X’s strategic partnership with Billion Prima extends beyond capital injection, with plans to commercialize the world’s first baggage and parcel scanner using Micro-X’s NEX Technology within the next 12 months. This partnership is expected to generate additional milestone payments totaling $3.2 million, further supporting the company’s commercialisation efforts.

In line with its strategic reset, Micro-X has discontinued its Argus operations, a move expected to yield material cost savings and enable a sharper focus on high-value medical imaging opportunities. The company is also actively seeking to monetise its security technology through additional partnerships, aiming to leverage its intellectual property and development work to fund its medical imaging ambitions.

Capital Structure and Shareholder Impact

Upon completion of the capital raising, Micro-X anticipates approximately 697 million shares on issue. Shareholders who fully participate in the entitlement offer will maintain their proportional ownership, while non-participating shareholders face dilution of up to approximately 6%. The company has provided a top-up facility allowing eligible shareholders to apply for additional shares beyond their entitlement, subject to availability.

Micro-X’s leadership emphasizes that the capital raising is a pivotal step to extend the company’s runway to cashflow stability, enabling execution on near-term commercial milestones and strengthening its position in the competitive medical imaging sector.