- Micro-X (MX1) will raise $15 million to keep pace with the heightened demand for x-ray machines during the COVID-19 pandemic
- The Australian company has already received commitments for an $8.75 million placement
- Micro-X also announced a fully underwritten $6.25 million entitlement offer on a one for 5.6 basis, at 14 cents per share
- Funds will be used to accelerate the sale of the Nano mobile x-ray unit for which there has been increased demand for during the pandemic
- In addition, some of the funds will be used to develop a more powerful generator for the Rover military mobile x-ray unit and bring forward its launch to later this year
- Micro-X is trading 5.71 per cent lower at 16.5 cents per share
Micro-X (MX1) will raise $15 million to keep pace with the heightened demand for x-ray machines during the COVID-19 pandemic.
As the number of COVID-19 cases around the world has grown, so too has the need for x-ray technology. Since January 2020, the company has received $3.6 million worth of orders for its Nano mobile x-ray units.
“Chest X-rays are used to provide vital clinical information in monitoring respiratory issues associated with the illness,” explained Micro-X Chairman Patrick O’Brien.
“There has been a significant increase in global demand for mobile X-ray as a result of the urgent need for imaging of COVID-19 patients,” he continued.
In light of the current and anticipated demand, Micro-X will ramp up production and reduce the delivery times for its Nano product. This will require an addition $4 million which will be covered by the capital raising.
In addition, some of the funds from the capital raising will be used to develop a more powerful generator for the Rover mobile x-ray unit for military use and bring forward its launch to later this year. Finally, the money will provide a funding runway into 2022.
The capital raising
Micro-x has received firm commitments from sophisticated and institutional investors for an $8.75 million placement. This will be comprised of 62.5 million shares issued at 14 cents per share.
In addition, Micro-X announced a fully underwritten $6.25 million pro-rata entitlement offer. Australian and New Zealand shareholders, as of the record date of April 22 2020, will be eligible to subscribe for one share for every 5.6 shares held.
Shares under the entitlement offer will also be issued at 14 cents each, representing an 18.9 per cent discount of the five-day volume-weighted average. The offer is fully underwritten by Morgans Corporate and Bell Potter Securities.
Micro-X is trading 5.71 per cent lower at 16.5 cents per share at 2:00 pm AEST.