The Data Exchange’s stock fell straight by more than 18% after the suspension of trading in DXN securities got lifted today morning. The sell-off dragged the DXN shares down 18.919% to last trade at $0.150 on 17 December 2018.
This comes after the company has released the long-awaited capital raisings announcement in the morning trade, today. The provider of Data Centre as a Service (DCAAS), The Data Exchange Network Limited (ASX: DXN) stated it had raised total $2,010,739 through the placement of 12,748,383 shares to institutional investors at a price of $0.155 per share along with making a private placement of 224,129 shares.
Under the settlement of capital raised through Placement, the company intends to issue the above-stated shares by Wednesday, 19 December 2018. However, the issue of 1,451,613 shares, worth $225,000 is subject to shareholder’s approval as it relates to Director participation. For this purpose, the company has scheduled shareholders’ approval to be taken at its General Meeting due in late January 2019.
In today’s announcement, The Data Exchange Network also unveiled its Share Purchase Plan to raise $2.5 million. The company told that shareholder registered on the record date of 13 December 2018 will be entitled to subscribe for the share purchase plan at a purchase price of $0.155 per share. But the company has set a minimum threshold of $2000 for each shareholder who can take up a maximum of $15,000 worth DXN shares.
Initially, the company targets $2.5 million to raise through SPP. However, it also reserves the oversubscription right for an additional $1 million. The company informed that at its Board discretion it may withdraw, scale back, accept oversubscription or close the offer early.
The data center builder and operator intends to utilize the funds raised through Placement and SPP towards increasing the power capacity to 1MW at both Homebush, Sydney and Port Melbourne.
Currently, DXN’s Share Purchase Plan is scheduled to open on 21 December 2018 and close on 25 January 2019. Further, the issue of shares under SPP is due to be held on 1 February 2019 to commence trading on 4 February 2019. The company confirmed that new shares to be issued under Placement and SPP would rank equally with existing DXN shares.
The Data Exchange Network Limited is into the business of building, designing, operating and owning data centers for clients. The company is engaged in providing several customized and integrated solution in modular colocation from a single shelf in the colocation facilities through to fully customized Edge Infrastructure.
Since its listing on Australian Securities Exchange in April 2018, The Data Exchange Network Limited has witnessed a negative market sentiment reflecting a plunge of 26%. Over the past three months, DXN has fallen 33.93%, and in the recent 5-days trade to 11 December 2018, the stock has slipped by 5.13%.
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