The Micro-X Ltd (ASX: MX1) share price exploded today on news of a $15 million investment.
Micro-X shares surged 37% from 13.5 cents to 18.5 cents before retreating. The company's shares finished the day up 26%.
Let's take a look at what this ASX medical tech share reported.
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New strategic partnership
Micro-X has formed a strategic partnership with Varex Imaging Corporation (NASDAQ: VREX). Varex is said to be the biggest independent manufacturer of x-ray technology components in the world.
Varex will pay Micro-X US$5 million (about A$7.5 million) for a global exclusive licence to use Micro-X's NEX technology. Under the deal, Varex will be able to design, make and sell multi-beam x-ray tubes using this technology.
Further, Varex will take a 9.9% stake in Micro-X via a share placement of 50,709,000 shares at 14.7 cents per share. This investment is valued at nearly $7.5 million. In total, this would take Varex's investment in Micro-X to about $15 million.
Commenting on the news, Micro-X managing director Peter Rowland said:
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.
This collaboration contributes hugely to our future growth and allows us to continue to focus on future medical and security imaging applications for our proprietary NEX Technology
Micro-X is holding an investor call at 9am on Tuesday to discuss this news.
Micro-X share price snapshot
The Micro-X share price has slid 42% in the past year, while it has fallen 33% year to date.
For perspective, the S&P/ASX 200 Health Care Index (ASX: XHJ) has fallen nearly 14% in a year.
Micro-X has a market capitalisation of about $78 million based on the current share price.
