Data Exchange Network Limited Comes Up With $8.3 Million Underwritten Entitlement Issue

  • Mar 27, 2019 AEDT
  • Team Kalkine
Data Exchange Network Limited Comes Up With $8.3 Million Underwritten Entitlement Issue

The Data Exchange Network Limited (ASX: DXN) is into the operation of data centre. The Company focuses on designing, engineering, constructing, owning, and operating a modular collocation data centre, as well as delivers a range of data centre solutions and services. Data Exchange Network serves customers in Australia.

The company, today on 27 March 2019, has reported that it has resolved to proceed with a non-renounceable pro-rata right issue on the basis of 8.5 new shares to be allotted for every 10 shares held by entitled shareholders as on the record date. The record date is expected to be around 3 April 2019. The issue will be made at a price of $0.05 per new share to raise up to approximately $8.3 million prior incurrig any costs. 

The subscribers in the Entitlement Issue will receive 1 free-attaching option (New Option) for every 2 New Shares subscribed for and issued, exercisable at $0.10 per Option on or before the date which is 1 year from the date of issue. The Company also intends to apply for quotation of the New Options. These New securities issued under the Offer will be listed on exchange with the new shares ranking pari-passu with existing fully paid ordinary shares.

The funds which are being raised from the Entitlement Issue will be applied for the completion of the first 1 megawatt (MW) of core supporting infrastructure to support the 400 kilowatts (kW) of RFS rack space currently at the Homebush datacentre (DXN-SYD01), completion to 400kW of rack space in situ (facility, power and telco modules) and partial construction of 1MW of core supporting infrastructure at the Port Melbourne datacentre (DXN-MEL01), working capital and costs of the Offer.

Mr. Douglas Loh, the Chairman of the company, said that the company is pleased to announce the Offer which will enable the completion of DXNSYD01 by July 2019, which is its’s priority. With a CAPEX budget established and a tightened project management schedule, the company is targeting a July 2019 opening for DXN-SYD01. The management is of a view that the experience gained from constructing DXNSYD01 will be utilised and applied to DXN-MEL01, with an anticipated operational date targeted for the March quarter 2020, subject to power requirement being met.

On the price-performance front, the stock has posted the year-till-date return of -28.29%. The company also has posted returns of -45.14% & -33.79% over the past six & three months, respectively. At the time of writing, i.e., on 27th of March 2019 AEST 03:18 PM, the stock of the company is trading at a price of A$ 0.075, down by 21.875% during the day’s trade with a market capitalisation of ~A$ 11.46 Mn. The stock opened the day at A$ 0.060 reached the intraday high of $ 0.075 and touched an intraday low of $ 0.055, with an average daily volume of more than 326,333. It had a 52-week high price of $ 0.355 and a 52 weeks low price of $ 0.055, with an average volume of, 352,469 approximately.


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