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Israeli mini X-ray developer Nanox sets terms for $100 million Nasdaq IPO

Israeli mini X-ray developer Nanox sets terms for $100 million Nasdaq IPO

According to its filing with the U.S. Securities and Exchange Commission, the company plans to raise the money by offering 5.9 million shares at a price range of $16 to $18

Meir Orbach | 15:05  16.08.2020

Two weeks after revealing that it's planning a Nasdaq initial public offering, Israeli medical imaging company Nanox, incorporated as Nano-X Imaging Ltd., has announced the terms of its IPO.

According to its filing with the U.S. Securities and Exchange Commission, Nanox plans to raise $100 million by offering 5.9 million shares at a price range of $16 to $18.

The filing states that the company's main shareholders prior to the IPO are SK Telecom with approximately 16%, founder Ran Poliakine with around 13% and Moshe Moalem with 11.4%. Nanox said it plans to use most of the money it will raise to manufacture and deliver 12,000 new machines, as well as invest $5-7 million in further research and development.

The Nanox mini X-ray. Photo: Courtesy The Nanox mini X-ray. Photo: Courtesy The Nanox mini X-ray. Photo: Courtesy

According to the company, many of its existing investors and their affiliated entities have indicated an interest in purchasing an aggregate of up to approximately $80 million of the ordinary shares in the offering. Other than SK Telecom, those include Yozma Group Korea and Jin Ji Full Investment Holding Co., Ltd., an affiliate of Foxconn Singapore.

Nanox was founded in 2012 by Ran Poliakine, who also heads a development center in Neve Ilan just west of Jerusalem that hosts 10 startups, including Illumigyn, Wellsense Technologies LLC, and others. Nanox develops an innovative digital X-ray-based imaging device that produces a three-dimensional scan. Its technology is intended to reduce the cost of existing similar medical imaging systems and increase accessibility to X-ray medical diagnostic results.

The company had previously claimed to employ 60 people in Israel and Japan, but that figure likely includes contractors as in its filing with the SEC it stated that it employs 27 people in all, 21 in Israel and six in Japan.

Nanox wrote in the filing that it still doesn't have any operational product and that it will require additional time to complete its development and become commercial. As part of the company's agreement with SK Telecom, the Korean giant agreed to purchase 2,500 machines to be set up in South Korea and Vietnam.

Nanox, which has so far raised $137 million, still has no income and reported a loss of $13.7 million in the first six months of the year compared to $1.6 million in the first six months of 2019. Its total loss in 2019 stood at $22.5 million. The company says it has cash reserves reaching $39 million. Over the past year, the company's expenses grew significantly, totaling $7.9 million in the first six months of 2020 compared to $1 million in the first half of 2019.

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