XNEXT (IEU FT)

Xnext is a technology innovator start-up designing and developing X-ray machines, which are based on multilevel energy photon counting detector for real time quality and safety controls, mainly used in the food sector. The EIB loan will finance the promoter's research, innovation and development (RDI) expenses for the inspection of next generation X-ray machines.

The project will support the promoter's continued RDI and improvement of its proprietary technologies to increase the coverage of industry applications. The investments will also support its international expansion, by financing the consequent higher expenses in sales and marketing, as well as in net working capital.

The operation is in line with the InvestEU objectives of research development and innovation as well as of the development, deployment and scaling-up of digital technologies and services.

The market failures addressed by the planned investments concern information asymmetries in particular in case of early stage firm focusing in high risk activities, including exposure to higher levels of risks in certain sectors beyond levels that private financial actors are able or willing to accept, including where the investment would not have been undertaken or would not have been undertaken to the same extent because of its novelty.

The benefit of InvestEU in this specific case is the reinforcement of the Bank's risk capacity, which allows the Bank to address a distinct market failure and sub-optimal investment situations arising from the ongoing difficult context. Without the InvestEU initiative, EIB would not be able to support this operation to the same extent.

The project activities do not fall under the Annexes I or II of the EU Directive 2014/52/EU amending the Environmental Impact Assessment (EIA) Directive 2011/92/EU. The project will be carried out in existing facilities, already authorised, that will not change their scope due to the project. As such, the project activities are not subject to a mandatory EIA.

The promoter is a private company not operating in the utilities sector and not having the status of a contracting entity, thus not being subject to EU rules on public procurement. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to EU public procurement legislation, then the European Commission will be duly informed, which would require the promoter to apply those rules.