Nano X Imaging Ltd (NNOX)

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Nanox Signs Agreement With SPI Medical For Deployment Of 630 Nanox.ARC Units In Mexico; Agreement Guarantees Minimum Service Fees Of $119M Over Seven Years
7:15 am ET September 9, 2020 (Benzinga) Print
minimum service fees of $119 million to Nanox over seven years aiming to service both public and private sectors

NANO-X IMAGING LTD (NASDAQ:NNOX) (www.nanox.vision) ("Nanox" or the "Company"), an innovative medical imaging technology company, announces it has entered into an exclusive distribution agreement with SPI Medical ("SPI") for the deployment and introduction of Nanox's medical imaging services in Mexico.

SPI Medical, S. A. P. I. de C. V., formerly Spite Medical S.A. de C.V., is a distributor of specialty pharma products and medical devices in Mexico. The company has previously served as distribution partner for medical imaging equipment from Philips, GE, Siemens, Planmed and Toshiba, as well as a distributor of specialty drugs for Merck, Abbott, Bayer, Eli Lilly, PISA and others.

The agreement has an initial term of seven years subject to receiving local regulatory approvals and acceptance test clearance. The parties will collaborate on the deployment and operation of 630 Nanox Systems comprised of the Nanox.ARC and the Nanox.cloud. The parties aim to provide medical imaging services across Mexico at affordable prices for communities of varying socio-economic status, including rural areas.

The Nanox System will offer a range of medical imaging services, from 2D X-ray to 3D Tomosynthesis. Nanox will provide the Nanox Systems to SPI for pilots in the public and private sectors. The services are planned to be offered on a pay-per-scan business model.

According to the agreement and subject to regulatory approval, SPI commits to a minimum annual service fee to Nanox of $17 million per year, guaranteed by a standby letter of credit in favor of Nanox and renewable on an annual basis.

"Mexico represents a real opportunity for Nanox to dramatically change people's lives," stated Ran Poliakine, Chairman and Chief Executive Officer of Nanox. "The agreement with SPI will enable us to help the Mexican population by providing higher accessibility to and affordability of medical imaging and high-volume screening across the country. We want medical imaging to become a ubiquitous and readily available service, such as water or electricity, accessible to all communities everywhere. The SPI team has the experience and knowhow to help us realize this social agenda."

"Nanox has a unique technology and business model," noted Victor Zabaneh, CEO of SPI. "We have been dealing with medical imaging for decades with the aim to improve the standard of care for Mexican people. Nanox has a solution that may potentially become a game changer in increasing available systems for general public use. There is now a real opportunity to make preventive healthcare a reality via early detection imaging services. We are pleased to work with Nanox on such an ambitious project."

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