The Data Exchange Network Limited (ASX: DXN) which is into the business of designing, building, owning and operating data centers, announced on 17 December 2018 that it is raising capital through the placement of shares and share purchase plan. It will help in increasing the power capacity to 1MW at its Homebush, Sydney and Port Melbourne. For more details, a piece of news is already published on 17 December 2018.
Further to its earlier capital raising announcement, the company has clarified to its shareholders regarding the record date who can participate in the Share Purchase Plan. Those shareholders who have made their registration by 7:00 pm (AEST) on Friday, 14 December 2018 and whose registered address are in Australia, or New Zealand will be eligible for the share purchase plan.
The company further declares Australia’s daylight-saving time for the dispatch of the offer document which on 21 December 2018, SPP opening date will be 21 December 2018, SPP closing date will be 25 January 2019. The issue of share under SPP will be on 1 February 2019, and these shares will commence trading on ASX on 4 February 2019.
The official listing date of DXN on ASX is 11 April 2018. The performance of the company remains -38% after its listing on ASX. The last six months performance of the company is -42.59%
For the period in between 4 August 2017 to 30 June 2018, the company has made a net loss of $5,736,986. The balance sheet of the company looks healthy as the company has maintained a net asset base of $14,710,900 and debt to equity ratio of 0.072. Also, the company holds a total current asset of $14,201,899 and a total current liability of $1,060,082 which indicates that the company is in a state to meet the working capital requirements and short-term obligations. The company has accumulated losses of $5,736,986 which might create a negative impact on the investors and the shareholders of the company. It also highlights the poor operating performance of the company.
The company has used $5,030,168 in its operating activities where the primary source of cash outflow was through the payment made to suppliers and employees. The company has used $1,600,237 in its investing activities where the primary source of cash outflow was through the payment of deposits and guarantees, purchase of plant and equipment and the purchase of the intangible asset.
The company was able to generate $18,678,129 through its financing activities where the primary source of cash inflow was in the form of the issue of shares and options and through the convertible notes. By the end of the period, the net cash and cash equivalent available with the company was $12,047,724. The announcement could not influence the share price on 19 December 2018. By the end of trading on 19 December 2018, the closing price of the share was A$0.155 which is towards the lower end of the 52 weeks low price and has a market capitalization of A$28.26 million.
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