Slide 1: Nano – Preparing for Production and Sales: Capital Raising Presentation
For personal use only Ltd ACN 153 273 735 Nano – Preparing for Production and Sales Capital Raising Presentation 10 April 2017 Commercial-in-Confidence © Micro-X Ltd 2016 Not for release or distribution in the United States of America
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Micro-X Limited ACN 153 273 735 (ASX : MX1) (Micro-X or the Company) in relation to a pro rata non- For personal use only renounceable entitlement offer of new fully paid ordinary shares (Shares) in Micro-X (Entitlement Offer). S
Slide 3: Important notice and disclaimer continued
Important notice and disclaimer continued No investment or financial product advice For personal use only The information contained in this presentation does not constitute investment or financial product advice (nor taxation, accounting or legal advice), is not a recommendation to acquire Micro-X S
Slide 4: Important notice and disclaimer continued
Important notice and disclaimer continued Financial data For personal use only All dollar values are expressed in Australian dollars ($) unless otherwise stated. The Company has a 30 June financial year-end. Investors should note that financial information in or referred to in this presentation has
Slide 5: Offer Overview
Offer Overview For personal use only • 1 for 10 non-renounceable entitlement offer to raise up to approximately A$4.8 million (“Entitlement Offer”) Offer Structure and • A placement to institutional investors and sophisticated and sophisticated/professional investors raising A$5.2 Size million at $0
Slide 6: Offer Overview continued
Offer Overview continued For personal use only • The Entitlement Offer is open to eligible shareholders as at 7.00pm (AEST) on the Record Date on 13 April 2017 • Any shortfall under the Entitlement Offer will be offered to eligible shareholders in Australia and New Zealand who apply for additional s
Slide 7: Offer Timetable
Offer Timetable For personal use only Event Date Announcement of Rights Issue by Micro-X Monday, 10 April 2017 Settlement of new shares issued under the Placement Thursday, 13 April 2017 "Ex date" – the date on which Shares are quoted ex-entitlements Wednesday, 12 April 2017 Entitlement offer record
Slide 8: Micro-X Limited Capital Structure
Micro-X Limited Capital Structure For personal use only The table below illustrates the impact of the Placement and Entitlement Offer on the capital structure of the Company Number Ordinary shares currently on issue 119,409,725 New shares issued under Placement (1) 13,000,000 10.9% 132,409,725 New S
Slide 9: MX1 Technology Advantage: Miniaturising X-Ray Tubes
MX1 Technology Advantage : Miniaturising X-Ray Tubes For personal use only 26kg 1kg Commercial-in-Confidence 9 Not for release or distribution in the United States of America
Slide 10: MX1 Core Business Model
MX1 Core Business Model For personal use only Developing & manufacturing innovative, ultra-lightweight, X-ray imaging products for global medical and security markets • Core technology is Carbon Nano-Tube (CNT) emitters – Exclusively licensed from technology partner XinRay Systems – Enables small si
Slide 11: Market Need: The Nano
Market Need: The Nano Current Mobile X-Ray Units pose risks in cramped ICU environments For personal use only Current Mobile X-Ray Units are clumsy and 500-600kg Commercial-in-Confidence 11 Not for release or distribution in the United States of America
Slide 12: Micro-X's First Product: 'DRX Revolution Nano'
Micro-X’s First Product: ’DRX Revolution Nano’ For personal use only Competitive Features: • Ultra lightweight (85kg) • Fully integrated Digital Imaging • Aggressive pricing • Small footprint • Easily maneuverable • Wireless image transmission • 4 hour continuous endurance • Multi-Focus Commercial-i
Slide 13: Carestream Health Inc
Carestream Health Inc Exclusive Global OEM Distribution Partner For personal use only • Sales of US$2.4Billion • 7,500 employees in 150 countries • Formerly Kodak Medical Imaging • Leader in Digital Medical Imaging • ‘Revolution’ is #1 ranked mobile X-Ray Commercial-in-Confidence 13 Not for release
Slide 14: RSNA: Carestream CEO shows off the Nano X-ray tube
RSNA: Kevin Hobert, CEO of Carestream Health, shows off the Nano X-ray tube For personal use only Commercial-in-Confidence 14 Not for release or distribution in the United States of America
Slide 15: 'Nano' - Designed for simplicity of Final Assembly
‘Nano’ - Designed for simplicity of Final Assembly Buy Buy For personal use only Assemble Assemble Assemble Assemble Buy Buy Assemble Assemble Buy Buy Buy Assemble Commercial-in-Confidence 15 Not for release or distribution in the United States of America
Slide 16: Manufacturing Process – design influence from Holden
Manufacturing Process – design influence from Holden For personal use only Commercial-in-Confidence 16 Not for release or distribution in the United States of America
Slide 17: Company Quality Accreditation: ISO 13485
Company Quality Accreditation : For personal use only ISO 13485 Accreditation • BSI Stage Two Audit successful - Certificate of Registration received 7th April 2017 • Company-wide Quality Management System is recognised to meet Medical Device Directorate standards for all company processes operating
Slide 18: Regulatory Approvals
Regulatory Approvals: For personal use only ‘K’ Number received from FDA: 15th March 2017. •FDA acknowledge receipt of a complete & valid 510(k) submission •Product marketing can now commence •Approval time normally 90 days •Health Canada Licence Application submitted to Therapeutic Products Directo
Slide 19: Reliability Growth Testing
Reliability Growth Testing: For personal use only Achieved RG Target 8th March 2017. • Normal Operation: – 60 x-ray shots/day = 22,000 per annum – Target for Mean Time Between Failures is 11,000 cycles • RGT Program • 3 carts, 50 circuits/shift, 3 shifts/day • Reliability Target set at 130,000 cycle
Slide 20: Generating Strong Market Interest
Generating Strong Market Interest For personal use only • Enthusiastic customer interest shown at recent Trade Shows • Carestream regional sales offices requesting additional units for demo/sale European Congress of Radiology, Arab Health, Vienna, 2nd March 2017 Dubai, 30th January 2017 Commercial-i
Slide 21: Pathway to Launch of the Nano
Pathway to Launch of the Nano: For personal use only • Service Training under way at Carestream HQ • Hospital Trade Trials in Canada on receipt of TPD Licence • Nano featured in more major Trade Shows: – Genoa, Italy, 6th April – Sao Paulo, Brazil, 4th May – Leipzig, Germany, 24th May – Manchester,
Slide 22: 'Rover': Nano variant for Deployed Military Hospitals
‘Rover’ : Nano variant for Deployed Military Hospitals For personal use only Commercial-in-Confidence 22 Not for release or distribution in the United States of America
Slide 23: 'Rover': Ruggedised and up-rated for military trauma exams
‘Rover’: Ruggedised and up-rated for military trauma exams For personal use only Commercial-in-Confidence 23 Not for release or distribution in the United States of America
Slide 24: 'Rover': Nano Useability Trials at exercise 'Giant Viper'
‘Rover’: Nano Useability Trials at exercise ‘Giant Viper’ For personal use only Commercial-in-Confidence 24 Not for release or distribution in the United States of America
Slide 25: MBI: Market Need from ADF Counter-IED Task Force
MBI: Market Need from ADF Counter-IED Task Force For personal use only Avoiding ‘The Long Walk’ Commercial-in-Confidence 25 Not for release or distribution in the United States of America
Slide 26: Current Counter-IED X-Ray Imaging Technology
Current Counter-IED X-Ray Imaging Technology Conventional transmission X-Ray requires manual positioning For personal use only Commercial-in-Confidence 26 Not for release or distribution in the United States of America
Slide 27: Mobile Backscatter Imaging (MBI)
Mobile Backscatter Imaging (MBI) The dream of Bomb Technicians everywhere For personal use only Commercial-in-Confidence 27 Not for release or distribution in the United States of America
Slide 28: Mobile Backscatter Imaging: Current technology limit of miniaturisation
Mobile Backscatter Imaging: Current technology limit of miniaturisation For personal use only ‘Drive-by’ ZBV Backscatter Imaging Van (American Science & Engineering) Commercial-in-Confidence 28 Not for release or distribution in the United States of America
Slide 29: Only CNT Technology can miniaturise Backscatter Imaging
Only CNT Technology can miniaturise Backscatter Imaging For personal use only No moving parts Multiple CNT Beams Fired in Sequence create scan motion Each beam radiates area for one pixel in vertical sequence without moving parts Rotate tube on vertical axis to create horizontal sequence of scan Com
Slide 30: Mobile Backscatter Imager - Product Concept
Mobile Backscatter Imager - Product Concept For personal use only Commercial-in-Confidence 30 Not for release or distribution in the United States of America
Slide 31: Product Development Pipeline
Product Development Pipeline: For personal use only First three products expected to address a >$100M per annum sales opportunity Company targeting 25-30% EBITDA margin Nano • OEM manufacture - branded Carestream distribution in 130 countries • $40M pa sales opportunity expected Rover • Leverages cl
Slide 32: Upcoming Anticipated Milestones / Newsflow Events
Upcoming Anticipated Milestones / Newsflow Events For personal use only Indicative Date Event May 2017 First order commitment from Carestream May 2017 Nano Trade trials June 2017 510(K) Approval July 2017 Nano Declaration of Conformity July 2017 MBI imaging demonstration to ADF July 2017 Rover imagi
Slide 33: Why invest in Micro-X?
Why invest in Micro-X ? For personal use only A compelling investment proposition 1. Unique technology of electronically controlled X-ray tubes creates opportunity to develop a range of potentially game-changing new products – providing function in areas with limited (if any) competitors 2. Focus on
Slide 34: Thank You; Any questions?
For personal use only Thank You; Any questions? 34
Slide 35: Appendix – Risk Factors
For personal use only Appendix 1 – Risk Factors Commercial-in-Confidence Not for release or distribution in the United States of America 35
Slide 36: Risk Factors
Risk Factors For personal use only The Company is in the process of developing and commercialising its products There are inherent uncertainties that exist in any development and commercialisation program for new technologies and products. The Company’s products are at varying stages of development,
Slide 37: Risk Factors continued
Risk Factors continued For personal use only The Company’s business is, in the short to medium term, dependent on the commercial success of a single product – the DRX Revolution Nano The Company expects to derive a significant majority of its revenue in the short to medium term from sales of the DRX
Slide 38: Risk Factors continued
Risk Factors continued For personal use only Ability to rely on and protect the Company’s intellectual property The Company’s success depends at least in part on its use of its intellectual property, as well as third party intellectual property which is licensed or otherwise granted to the Company t
Slide 39: Risk Factors continued
Risk Factors continued For personal use only Insufficient or disruptions to the Company’s manufacturing ability or capacity continued In addition, if the Company is unable to keep up with demand for its products, including as a result of disruptions at its assembling and testing facility and particu
Slide 40: Risk Factors continued
Risk Factors continued For personal use only XinRay may not continue its relationship with the Company Micro-X considers XinRay to be a key supplier of the Company. A number of agreements exist between the Company and XinRay, including in relation to exclusivity and the supply of the CNT X-ray tubes
Slide 41: Risk Factors continued
Risk Factors continued For personal use only Change of control Micro-X is a party, or may become a party, to agreements which contain a change of control provision. For example, the Supply Agreement includes a provision providing that the Company grants to Carestream the right to make, have made and
Slide 42: Risk Factors continued
Risk Factors continued For personal use only Product recalls and product liability The Company has procedures and policies in place to ensure compliance with quality standards and to ensure its products comply with applicable legal and regulatory requirements. Unforeseen problems or poor product qua
Slide 43: Risk Factors continued
Risk Factors continued For personal use only Reliance on key personnel The medical equipment industry has strong competition for highly skilled workers due to the limited number of people with the appropriate skill set. The Company currently employs, or engages as consultants, a number of key manage
Slide 44: Risk Factors continued
Risk Factors continued For personal use only Failure to meet health and safety regulations The Company currently operates in Australia and is subject to laws and regulations in respect of health and safety in Australia (including workplace health and safety, and product safety laws and regulations).
Slide 45: Risk Factors continued
Risk Factors continued For personal use only Other risks Other risk factors that apply generally in the conduct of a business, including litigation resulting from the breach of agreements or in relation to employees or contractors (through personal injuries, industrial matters or otherwise), loss of
Slide 46: Risk Factors continued
Risk Factors continued For personal use only Partial underwriting The Entitlement Offer is partially underwritten by Wilson Corporate Finance Ltd for an amount of $2.8 million. The underwriting agreement is subject to customary termination events. If the underwriting agreement were to be terminated,