Carbon fiber nanotube X-ray technology company Micro-X has secured a strategic partner and $15 million in licensing fees and capital funding that will support the company as it brings new products to market .
The Adelaide-based company today announced a long-term strategic relationship with radiographic component manufacturer Varex Imaging Corporation, giving it an exclusive worldwide license to use its technology in multi-beam x-ray tubes – an area which is not not operated by Micro-X itself.
In return, Varex, which has annual sales of $800 million, will pay Micro-X a royalty of A$7.5 million and invest $7.5 million in Micro-X shares, taking a 9.9% stake in the company.
Micro-X Managing Director Peter Rowland said, “This investment recognizes 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 technologies.
“This collaboration contributes enormously to our future growth and allows us to continue to focus on future medical imaging and security applications.
Micro-X technology is based on its unique X-ray generator which uses an array of carbon fiber nanotubes to generate X-rays rather than hot cathode systems that have been used for over a century.
Importantly, Varex’s licensed uses are different from those marketed by Micro-X itself – its current Rover handheld X-ray machine and a new product to be launched later this year – the Gear Detector Argus improvised explosives (photo).
Micro-X is also developing an airline security screening system, funded by the US Department of Homeland Security, and a stroke detection system designed for ambulances.
The X-ray X-ray IED uses backscatter imaging technology to detect threats such as bombs, drugs, and other organic material, with operators able to view the images from a safe distance.
Rowland said the new funding strengthens the company’s balance sheet and will 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 happy to invest in nanotube technology not only to diversify but also to deepen our expertise in this area.”
Early this morning, Micro-X shares rose 30% to 17.5 cents.