Micro-X Ltd (ASX:MX1) Raises $3.3M in Capital Placement
Capital Raising
Micro-X Ltd (ASX: MX1) has successfully raised $3.3 million through a $2.0 million institutional placement and a $1.3 million institutional entitlement offer at 7.0 cents per share. This follows a strategic placement with Billion Prima, bringing total secured capital to $5.7 million.
Strategic Partnerships
The $2.4 million strategic placement with Billion Prima at 9.0 cents per share is part of a $5.6 million investment in Micro-X’s baggage and parcel screening technology in South-East Asia. Billion Prima will acquire approximately 4.4% of the company’s shares and invest an additional $3.2 million to commercialise a portable scanner using Micro-X’s NEX Technology.
Future Outlook
The funds raised will be used to focus on medical imaging and develop Micro-X’s range of mobile X-ray and CT products. The company has secured a contract with ARPA-H for up to A$25 million to develop a full-body medical CT device. Additional funds will support the Head CT imaging trials and the further monetisation of security assets.
Executive Comments
Micro-X Chief Executive Officer Kingsley Hall commented: “We are pleased to have secured this $3.3m of funding as the first part of our capital raising, which, alongside the $2.4m strategic placement with Billion Prima, strengthens our balance sheet at a pivotal moment. This enables us to execute our strategy and focus on our commercial and development products in medical imaging. We have reduced costs considerably with the discontinuation of the Argus and we continue to progress the further monetisation of our security assets. We believe this provides us with a more streamlined business across Rover Plus where we have several large opportunities in progress; Head CT with imaging trials due to commence shortly; and the Full Body CT now in early development with the ARPA-H funding of up to A$25m.
“We are grateful to existing shareholders and the new investors who participated in the Placement and Institutional Entitlement Offer and we are now targeting the additional $2.7m remaining under the Retail Entitlement Offer which opens on 13 February 2025.”
Motley Fool contributor Lauren Surplice 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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