Micro-X Ltd. announced a strategic collaboration with Varex Imaging Corporation. The collaboration comprises an exclusive global licence for a non-refundable fee of AUD 7.5 million (USD 5 million), enabling Varex to use Micro-X's NEX technology in the field of multi-beam x-ray tubes, and an equity subscription to achieve a 9.9% Micro-X holding totaling AUD 7.5 million at a 10% premium to the 15-day VWAP. Micro-X has signed agreements to form a long-term strategic collaboration with leading global supplier and manufacturer of x- ray components Varex Imaging Corporation.

Under the terms of the ongoing agreements, Varex can design, manufacture, and sell multi-beam x-ray tubes using Micro-X's proprietary NEX Technology. Varex will pay Micro-X a once-off fee for this licence of USD 5 million (AUD 7.5 million), payable in five milestones commencing on the date of signing and over coming months as the technology transfer is achieved from Micro-X's Adelaide team to Varex's facility in Salt Lake City. The Licence 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. The money to be received under the collaboration consists of five equal milestone payments of $1.0 million each, with the initial payment due on execution of the contract. The following four milestones, which are expected to be achieved approximately evenly across the following 12 month period, relate to staged technical achievement of goals validating the technology transfer to Varex for manufacturing of multi beam tubes in Salt Lake City.

Varex is a globally leading independent supplier of x-ray tubes and associated components which are sold to x-ray imaging system manufacturers world-wide for a range of medical and industrial applications. Each year Varex produces over 25,000 x- ray tubes and 20,000 x-ray detectors. In 2021 Varex reported over USD 818 million in revenue with their top five customers for that year being: Canon Medical, General Electric, Elekta, United Imaging and Varian Medical.

Varex has a stated mission to be an industry leader in technology innovation. The strategy for the collaboration is to enable Varex to offer multi-beam x-ray tubes to their global radiology systems customers for incorporation into new imaging products across a range of imaging applications. The collaboration will provide Varex with the right to use Micro-X's intellectual property under an exclusive licence to commercialise multi-beam emitter technology.

This represents a commercial opportunity for Micro-X to monetise an area of its core technology without impacting Micro-X's existing or future plans. The global medical imaging market is forecast to continue to grow in value as a result of the rising incidence of lifestyle-related diseases, rising demand for early detection tools, technological advancements to speed up turnaround times, increased government investment, and the expansion of new facilities in developing countries. Varex's credibility as a trusted supplier and its scale of manufacturing opens the potential to accelerate global market uptake of Micro-X technology across a range of industries.

Micro-X's commercialisation strategy remains unchanged as a supplier of high-value imaging products and, as such, a collaboration with a leading edge, high technology x-ray component supplier has many strategic benefits in maintaining product innovation. As part of the collaboration Micro-X will investigate how Varex's photon-counting detectors might extend the performance of its emerging CT products.