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Nano-X Imaging Ltd. (NNOX) has filed to raise $125 million in an IPO of its ordinary shares, according to an F-1 registration statement.

The firm is developing a lower-cost X-ray medical imaging system.

NNOX appears to have strong existing investor support for the IPO.

Neve Ilan, Israel-based Nano-X was founded to create a 'novel digital microelectromechanical system ("MEMs") semiconductor cathode' that it believes can produce the same results as X-ray technology but at a fraction of the cost.

Management is led by founder and Chief Executive Officer Mr. Ran Poliakine, who was previously a founder or co-founder of several high tech companies in the hardware and software spaces.

Below is a brief overview video of the firm's device:

Source: Boyd Digital: Global Tech News

The firm is developing a combination hardware and software system it calls Nanox System.

Upon approval, management expects to produce a 3D tomosynthesis imaging system for its global marketing efforts.

Investors in the firm have invested at least $31.7 million and include SK Telecom TMT, Tsuri Limited and Everhart Finance, Yozma Group Korea and Asia Beam Limited.

According to a 2020 market research report by Grand View Research, the global market for medical imaging was approximately $20.1 billion in 2017 and is expected to reach $30 billion by 2027.

This represents a forecast CAGR (Compound Annual Growth Rate) of 4.0% from 2018 to 2027.

Key elements driving this expected growth are increasing demand for early-stage diagnosis of disease, growing investment in new technologies and higher governmental support for better imaging options.

Also, the industry will see an increase in demand from teaching hospitals and universities as part of their training process upgrade.

Major competitive vendors that provide or are developing treatments include:

  • Carestream
  • XinRay Systems
  • Varex Imaging

Management says its system has lower risk of fire, greater resistance to degradation and reduced positioning error deviation.

Nano-X’s recent financial results are typical of a development stage medical instrument firm in that they feature no revenue and significant R&D and G&A expenses associated with its development efforts.

Below are the company’s financial results for the past two and ½ years:


Source: Company registration statement

As of December 31, 2019, the company had $9.6 million in cash and $20.6 million in total liabilities. (Unaudited, interim)

Nano-X intends to raise $125 million in gross proceeds from an IPO of its ordinary shares, although the final amount may be different.

Certain existing shareholders have indicated an interest to purchase shares of up to $80 million in the aggregate at the IPO price. This is a strong signal of interest and a positive for potential IPO investors.

Management says it will use the net proceeds from the IPO as follows:

for the manufacturing of the initial wave of Nanox.ARC units planned for global deployment and investment in manufacturing capacities; to the extent the cost-per-unit of the Nanox.ARC is higher than we expected or the amount of proceeds we receive is lower than we expected, we plan to reduce the number of units to be manufactured with such proceeds accordingly;

for the shipping, installation and deployment costs of the Nanox System; to the extent the number of units of the Nanox.ARC to be manufactured is reduced for the reasons described above, the amount of proceeds to be used for shipping, installation and deployment will be reduced accordingly;

for the continued research and development of the Nanox.ARC, the development of the Nanox.CLOUD and for regulatory clearance in various regions, which we expect will be sufficient for obtaining the 510(k) medical device clearance with respect to the Nanox.ARC with the FDA; and

the remaining funds, if any, to be used for sales and marketing expenses, general and administrative expenses and general corporate purposes.

Management’s presentation of the company roadshow is not available.

Listed bookrunners of the IPO are Cantor, Oppenheimer, Berenberg, and CIBC Capital Markets.


Nano-X is seeking U.S. public capital market funding to achieve final approval and early commercialization rollout of its flagship system.

Assuming success in both its regulatory and early rollout, the company will likely need additional capital to widen its commercialization efforts.

The market opportunity for improved and lower cost X-ray type functionality is substantial and expected to reach $30 billion on a global basis by 2027.

The company’s investor syndicate includes a number of South Korea-based firms and they have indicated a non-binding interest to purchase a high percentage of the proposed IPO. This is unusually strong investor interest or ‘support’ for the IPO and a positive for the ultimate valuation of the IPO.

Cantor is the lead left underwriter and IPOs led by the firm over the last 12-month period have generated an average return of negative (59.5%) since their IPO. This is a bottom-tier performance for all major underwriters during the period.

I look forward to learning more about the IPO pricing and valuation assumptions and will provide a final opinion at that time.

Expected IPO Pricing Date: To be announced.

Glossary Of Terms

(I have no position in any stocks mentioned as of the article date, no plans to initiate any positions within the next 48 hours, and no business relationship with any company whose stock is mentioned in this article. IPO stocks can be very volatile in the days immediately after an IPO. Information provided is for educational purposes only, may be in error, incomplete or out of date, and does not constitute financial, legal, or investment advice.)


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