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Israeli X-Ray-Tech Firm Nano-X Shares Up After IPO

Shares of Nano-X Imaging were higher in initial trading after the Israeli x-ray-tech company priced its IPO of 9.2 million shares at $18.
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Shares of Nano-X Imaging NNOX were higher in initial trading after the Israeli x-ray-tech company priced its IPO of 9.2 million shares at $18.

At last check the shares were up 22% at $21.91.

Gross proceeds of the offering, before deducting underwriting discounts and commissions and other offering expenses, are $165.2 million.

Nano-X also gave the underwriters a 30-day option to buy as many as 1.4 million additional shares at the IPO price. Nano-X is offering all the shares.

“As a first step to producing a new class of affordable medical imaging systems, we have focused on identifying and developing a novel X-ray source,” the company said in its F-1 filing with the Securities and Exchange Commission.

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“Our X-ray source is based on a novel digital microelectromechanical system semiconductor cathode that we believe can achieve the same functionalities as legacy X-ray analog cathodes, while allowing for lower-cost production than existing medical imaging systems. We developed this technology over eight years to reach commercial applicability.”

Nano-X said its system will enable lower prices and wider accessibility to imaging systems. 

“Our primary business model is based on a pay-per-scan pricing structure as opposed to the capital expenditure-based business model currently used by medical imaging manufacturing companies," the Neve Ilan, Israel, company said.

For the first six months of 2020, Nano-X posted a loss of 47 cents a share, widened from a loss of 7 cents in the year-earlier first half. Shares outstanding rose 25% to 29.3 million.

The offering is expected to close Aug. 25.

Cantor Fitzgerald, Oppenheimer, Berenberg and CIBC Capital Markets are joint book-runners. National Securities is co-manager for the offering.