Image Source: Getty Images
of Micro-X Co., Ltd. (ASX: MX1) shares surged today on news of a $15 million investment.
Micro-X shares rose 37% from 13.5 cents to 18.5 cents before falling. He ended the day with the company’s stock up 26%.
Let’s take a look at what this ASX medical tech stock reported.
New strategic partnership
Micro-X is Valex Imaging Corporation (Nasdaq: VREX). Varex is said to be the world’s largest independent manufacturer of his X-ray technology components.
Varex will pay Micro-X US$5 million (approximately AUD$7.5 million) for an exclusive worldwide license to use Micro-X’s NEX technology. Under this agreement, Varex will be able to design, manufacture and market multibeam X-ray tubes using this technology.
In addition, Varex will acquire a 9.9% stake in Micro-X through the issuance of 50,709,000 shares at 14.7 cents per share. This investment amounts to approximately $7.5 million. In total, Varex’s investment in Micro-X is approximately $15 million.
Commenting on the news, Micro-X Managing Director Peter Rowland said:
This long-term investment will continue to propel Micro-X on the world stage as a leader in innovative products and technologies designed to make life better.
This collaboration will significantly contribute to our future growth and allow us to continue our focus on future medical and security imaging applications for our proprietary NEX technology.
Micro-X is hosting an investor conference call on Tuesday at 9am to discuss this news.
Micro-X stock snapshot
Micro-X’s stock is down 42% over the past year, but is down 33% year-to-date.
for perspective, S&P/ASX 200 Healthcare Index (ASX: XHJ) is down nearly 14% in a year.
Micro-X has a market capitalization of approximately $78 million based on its current share price.