Data Exchange Receives A Nod From The Sydney Olympic Park Authority To Begin Construction On Its Sydney Data Centre

  • Mar 19, 2019 AEDT
  • Team Kalkine
Data Exchange Receives A Nod From The Sydney Olympic Park Authority To Begin Construction On Its Sydney Data Centre

The Data Exchange Network Limited (ASX: DXN) operates as a data centre company. The Company focuses on designing, engineering, constructing and owning data centres. The company offers businesses space in its modular colocation facilities to suit technical specifications and operational requirements.

The company, on 19 March 2019, updated the market that it has received approval from the Sydney Olympic Park Authority to commence construction of the Sydney data centre (SYD-DXN01). The Company has already completed preliminary activities, that include the delivery of prefabricated facility modules, office alterations and the critical infrastructure that supports an initial 1MW cluster.

The development approval has been received, more than two weeks later than anticipated. The construction phase will commence immediately, with the objective to be Ready for Service (RFS) by the end of July 2019, with the Company expecting to achieve “Tier Certification of Constructed Facility – TIER III” by the end of August 2019. In mid-February, the Company undertook investor tours of the Sydney site.

Mr. Forth and Mr. Whiting the joint interim CEO’s stated that the tour provided an ideal platform to assist the company’s investors, in visualizing the scale of the opportunity and the benefits of its modular approach. Additional modules will be deployed in response to market demands, matching the company’s capital investment with revenue. The management believes that this business model is a disruptor in the data centre space.

The net loss of the Company for the half-year ended 31 December 2018 came in at $2,932,887 (2017: $1,026,488). On 20 December 2018, the Company raised $1,785,274 through a placement of 11,517,899 fully paid ordinary shares, to the sophisticated and institutional investors at $0.155 per share. On 13 February 2019, the Company raised $225,000 through the placement of 1,451,613 fully paid ordinary shares to Directors that was approved at a general meeting of shareholders on 21 January 2019. The company didn't pay any dividends during the half year. Also, no recommendation for the payment of dividends has been made.

As per the review report issued by the Company’s Auditor, Mr. Moore Stephens, there is significant uncertainty whether the Company will be able to continue as a going concern. At 31st December 2018, the Company had cash assets of $4,971,207 and incurred a net loss after tax of $2,932,887 and net operating cash outflow were $4,317,807. The ability of the Company to continue to pay its debts as and when, they fall due is dependent upon the Company’s successfully raising additional share capital and generating sufficient revenue. If these outcomes cannot be realized, the Company may not be able to meet its liabilities as they fall due. The Company may be unable to realize its assets in the ordinary course of business and at amounts stated in the financial report.

On 4 February 2019, the company provided its operations and strategy update.

On the price-performance front, the stock has posted the YTD return of -40.74%. The company also has posted returns of -48.39% over the past three months. By the end of the trading session, (as on 19 March 2019). The stock of the company stood at a price of A$0.082, up by 2.5% from the previous close, with a market capitalization of ~A$ 15.62 Mn. The stock opened the day at A$0.075 reached the intraday high of A$0.087 and touched an intraday low of A$ 0.075, with an average volume of ~348,931. It had a 52-week high price of A$0.355 and a 52 weeks low price of A$0.070.


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