Micro-X Invites Shareholders to Join $2.7m Retail Entitlement Offer

Micro-X Launches Retail Entitlement Offer

Micro-X Ltd (ASX: MX1), an Australian high-tech medical imaging company, has officially opened its retail entitlement offer as part of a broader $6 million capital raising initiative. The retail offer, which commenced on February 13, 2025, aims to raise approximately $2.7 million by inviting eligible shareholders in Australia and New Zealand to purchase new shares at an issue price of A$0.07 each.

This retail component follows an institutional placement and entitlement offer that collectively target $4 million, alongside a strategic placement of $2.4 million to Billion Prima Sdn Bhd, a new security sector partner acquiring a 4.4% stake at a higher price of $0.09 per share. The combined capital raising is designed to strengthen Micro-X's balance sheet and support its expanding product pipeline.

Offer Details and Shareholder Participation

Eligible shareholders as of the record date, February 10, 2025, can subscribe for one new share for every ten shares they hold. The offer is non-renounceable, meaning entitlements cannot be traded or transferred. Shareholders who fully take up their entitlement may also apply for additional shares up to 400% of their entitlement through a 'top-up' facility, subject to availability and potential scale-back at Micro-X's discretion.

Applications must be submitted by 5:00pm AEDT on February 28, 2025. Micro-X has provided detailed instructions through its Retail Offer Booklet, available on its website and via Computershare's platform, ensuring shareholders have clear guidance on how to participate.

Strategic Use of Funds and Growth Prospects

The capital raised will primarily fund the commercialisation of Micro-X's medical imaging technologies, including mobile digital radiology products and advanced CT imaging devices. Notably, the company is progressing a miniature brain CT imager for pre-hospital stroke diagnosis and a next-generation airport security checkpoint scanner under contracts with US government agencies.

Micro-X's vertically integrated manufacturing in Adelaide and growing US presence position it well to capitalise on these opportunities. The fresh capital injection is expected to accelerate product development and market penetration, critical for maintaining momentum in competitive health and security technology sectors.

Regulatory and Market Considerations

The entitlement offer is conducted under Australian securities regulations without a prospectus, relying on specific ASIC instruments. The offer excludes shareholders in the United States due to regulatory constraints, focusing on Australian and New Zealand investors. The company has appointed Morgans Corporate Limited and Hawkesbury Partners as joint lead managers, though the offer is not underwritten, leaving some execution risk dependent on shareholder uptake.

Micro-X's management emphasises the importance of shareholder participation to fully realise the commercial potential of its innovative technologies. The outcome of this capital raising will be closely watched by investors as a barometer of confidence in Micro-X's strategic direction and financial health.