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- DXN (DXN) agrees to buy the Secure Data Centre in Darwin for around $4.88 million
- The purchase is a share and cash agreement, which includes just over $4.6 million in cash and shares worth $200,000
- To pay for the purchase, DXN will undertake a placement and it has received binding commitments for around $1.64 million
- Additionally, Singapore based company DC Alliance will also have an option to increase its investment in the company
- DXN is trading in the grey at one cent per share at 1:23 pm AEST
DXN (DXN) has agreed to buy the Secure Data Centre in Darwin for around $4.88 million.
The data centre is the only continuously maintainable data centre in the Northern Territory. It has 70 racks occupied, with the capacity to expand to 127 racks.
The purchase is a share and cash agreement, which includes just over $4.6 million in cash and shares worth $200,000.
Under the agreement, the vendors Paul and Tracey Grist will operate the data centre for three years.
Placement
To pay for the purchase, DXN will undertake a placement and received binding commitments for around $1.64 million.
Under the placement, DXN will issue shares for 0.9 cents, a 16 per cent discount to the company’s average 30-day volume weighted share price.
Additionally, Singapore based company DC Alliance will also have an option to increase its investment in the company by a further placement of $1.25 million worth of shares.
However, this investment will need the Australian Foreign Investment Review Board and shareholder approval.
DXN and DCA are also working towards an agreement to create a strategic alliance to sell the Australian data centre assets.
DCA Executive Chairman Roy Wong said he had been tracking DXN ever since DC Alliance started.
“I have always seen DXN as the most suitable partner for DC Alliance and I am pleased that this vision is now set in motion with our commitment as a strategic shareholder and finalising a binding agreement,” Mr Wong said.
“I strongly believe it will be a win-win relationship and it is our common goal to grow and achieve greater heights together with our complementary skills, solutions and network.”
Share Purchase Plan
DXN is also aiming to raise up to $1.5 million in a share purchase plan (SPP).
Under the SPP, shareholders will be able to purchase shares worth a maximum of $30,000 at the same price as the placement.
DXN was trading in the grey at one cent per share at 1:23 pm AEST.
