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DXN (ASX:DXN) raises $528,000 through single institutional investor

Technology
ASX:DXN      MCAP $4.622M
14 April 2021 14:20 (AEST)
DXN (ASX:DXN) - Departing CEO, Matthew Madden

Source: DXN

Fabricated modular data centre company DXN (DXN) has completed its placement to a single institutional investor, Armytage Private.

The company has received binding commitments from Armytage, under its Armytage Micro Cap Activist Fund, to raise a total of $528,000 in proceeds (before costs).

Under the placement, DXN will issue 44 million fully paid ordinary company shares at 1.2 cents per share. Alongside the ordinary shares, the company will also issue a free attaching unlisted option on a one-for-two basis, meaning that one option will be issued for every two new shares bought. 

The free attaching unlisted options will have an exercise price of three cents each, and come with an expiration date currently set for April 30, 2023. The company expects to complete allotment of the new shares and placement options around April 15, 2021.

DXN’s CEO, Matthew Madden, commented on the positive results of the company’s placement and welcomed its new institutional investor.

“DXN is delighted to welcome Armytage as a shareholder with DXN,” he said.

“Having a quality investor like Armytage invest is a testament to the belief in this growing data centre sector and DXN’s unique place as a manufacturer and operator,” he added.

The funds that have been raised through Armytage Private will primarily be used to provide working capital across the company’s data centre business. 

DXN is in the grey, trading at 1.5 cents per share at 12:43 pm AEST.

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