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<p>DXN Ltd (ASX:DXN) is a vertically integrated prefabricated modular data centre business with manufacturing facilities in Perth and its own data centre, SYD01, at Sydney Olympic Park in Sydney. &nbsp;In response to the recent market volatility, DXN has restruck its non-renounceable entitlement offer. The company is now offering a 13 for 10 non-renounceable share issue at $0.01/share to raise $5.92m, with an attached $0.02/share option expiring in three years’ time. Proceeds from the offer will fund the acquisition of TasmaNet’s Data Centre 3 revenues and assets ($2.43m), $0.89m in general working capital, $2.0m for product manufacturing working capital for DXN Modules and $0.09m for data centre marketing. The offer is fully underwritten by lead manager Pinnacle Corporate Finance with institutional shareholder SG Hiscock sub-underwriting approximately $556,000 and DXN executives $95,000 of the offer. The company has also secured a six-month principal and interest repayment holiday from its $5m secured chattel finance facility with ANZ Bank, saving around $140,000 per month. The financing restructure follows the announcement last week of a two-phased $2.3m contract with Speedcast International (ASX:SDA) to design, build and install a prefabricated modular cable station at its Mozambique operations. This underscores our forecasts for sales of $7.8m (total revenues of $8.8m) in FY20. &nbsp;We have updated our DCF valuation for the new entitlement offer, which will see more shares and listed options issued than previously forecast. Our base case DCF valuation is $0.08/share fully diluted, implying a forward 12 months EV/Sales multiple<a target="_blank"></a> of 6.9x. </p>

DXN Ltd (ASX:DXN) is a vertically integrated prefabricated modular data centre business with manufacturing facilities in Perth and its own data centre, SYD01, at Sydney Olympic Park in Sydney. &nbsp;In response to the recent market volatility, DXN has restruck its non-renounceable entitlement offer. The company is now offering a 13 for 10 non-renounceable share issue at $0.01/share to raise $5.92m, with an attached $0.02/share option expiring in three years’ time. Proceeds from the offer will fund the acquisition of TasmaNet’s Data Centre 3 revenues and assets ($2.43m), $0.89m in general working capital, $2.0m for product manufacturing working capital for DXN Modules and $0.09m for data centre marketing. The offer is fully underwritten by lead manager Pinnacle Corporate Finance with institutional shareholder SG Hiscock sub-underwriting approximately $556,000 and DXN executives $95,000 of the offer. The company has also secured a six-month principal and interest repayment holiday from its $5m secured chattel finance facility with ANZ Bank, saving around $140,000 per month. The financing restructure follows the announcement last week of a two-phased $2.3m contract with Speedcast International (ASX:SDA) to design, build and install a prefabricated modular cable station at its Mozambique operations. This underscores our forecasts for sales of $7.8m (total revenues of $8.8m) in FY20. &nbsp;We have updated our DCF valuation for the new entitlement offer, which will see more shares and listed options issued than previously forecast. Our base case DCF valuation is $0.08/share fully diluted, implying a forward 12 months EV/Sales multiple of 6.9x. 

DXN Ltd Fully Underwritten Entitlements Offer to Acquire Hobart DC

Australia

SpeedCast International Ltd is a provider of satellite-based communication networks and services in the Asia Pacific region and to the global maritime industry. The Company designs, implements, integrates, operates and maintains communications networks. I

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Speedcast International (SDA AU)

DXN Ltd Fully Underwritten Entitlements Offer to Acquire Hobart DC

DXN Ltd (ASX:DXN) is a vertically integrated prefabricated modular data centre business with manufacturing facilities in Perth and its own data...

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