ASX-listed imaging technology company Micro-X has signed a long-term strategic collaboration with x-ray tech manufacturer Varex Imaging Corporation.
The partnership includes an exclusive global licence for a non-refundable fee of $7.5 million, allowing Varex to use Micro-X’s NEX Technology for multi-beam x-ray tubes.
Varex will pay Micro X a once-off fee for the licence of $5 million, payable in five milestones beginning on the date of signing and over coming months as the equipment is transferred from Micro-X’s Adelaide facilities to Varex’s in Salt Lake City.
Peter Rowland, managing director of Micro-X, said the long-term collaboration contributes significantly to the company’s growth and allows it to continue its focus on future medical and security imaging applications.
“This long-term investment will continue to promote Micro-X on the world stage, as a leader in innovative products and technology that is designed to make lives better,” Rowland said in a statement.
The agreement’s scope is limited to x-ray tubes with multiple beams, an area of application not currently used in any of Micro-X’s four business units. The termination provisions within the agreements are for any uncured, material breach of the agreements including use of Micro-X IP outside this limitation and failure to pay any amounts due.
“We are pleased to continue to invest in nanotube technology to not only diversify but also deepen our expertise in this area,” said Sunny Sanyal, chief executive at Varex Imaging.
“With several hundred carbon nanotube-based systems in the field, Micro-X is an ideal company to collaborate with and further advance adoption of these technologies.”
Additionally, the collaboration opens an equity subscription to achieve a 9.9 per cent Micro-X holding, totalling $7.5 million at a 10 per cent premium to the 15-day volume-weighted average price.
Varex also entered an escrow agreement restricting dealing in or disposing of its shares in Micro-X for a period of 12 months.
Micro-X will receive a total of $15 million, which will significantly strengthen the company’s balance sheet and be critical to supporting ongoing activities, including final preparations to launch the Argus product in the coming months.
