Micro-X secures strategic partner and $15 million backing

Carbon fibre nanotube x-ray technology company Micro-X has secured a strategic partner and $15 million in licence fees and capital funds that will support the company as it brings new products to market.

The Adelaide company announced today a long-term strategic relationship with x-ray component manufacturer Varex Imaging Corporation giving it an exclusive global licence to use its technology in multi-beam x-ray tubes – an area not being exploited by Micro-X itself.

In return Varex, which turns over US$800 million annually, will pay Micro-X a licence fee of Au$7.5 million and invest $7.5 million into Micro-X shares, taking a $9.9 percent stake in the company.

Micro-X managing director Peter Rowland said: “This investment recognises the value of Micro-X’s world leading technology with Varex, one of the world’s most innovative x-ray technology companies, validating the future importance of cold cathode x-ray technology.

“This long term investment will continue to promote Micro-X on the world stage as a leader in innovative products and technology.

“This collaboration contributes hugely to our future growth and allows us to continue to focus on future medical and security imaging applications.”

Micro-X technology is based on its unique x-ray generator which utilises a carbon fibre nanotube array to generate x-rays rather than hot cathode systems in use for more than a century.

Importantly the uses licensed to Varex are different from those being commercialised by Micro-X itself – its current Rover portable x-ray machine and a new product to be launched later this year – the Argus improvised explosives device detector (pictured).

Micro-X is also developing an airline security checkpoint system, funded by the US Department of Homeland Security, and a stroke detection system designed for ambulance use.

The IED X-ray X-ray utilises backscatter imaging technology to detect threats such as bombs, drugs, and other organic material, with operators able to view the images at a safe distance.

Rowland said the new funding strengthened the company’s balance sheet and would support the launch of the Argus system and continue development of its other new products.

Varex Imaging CEO Sunny Sanyal said: “Varex has long believed in the future importance of cold cathode x-ray technology.

“We are pleased to invest in nanotube technology to not only diversify but also deepen our expertise in this area.”

Early this morning Micro-X shares were up 30 percent to 17.5 cents.

Picture: Micro-X