DXN Limited’s Trading Update of 22nd November 2023 announced three key initiatives which, in the words of the company, “place the Company on a much-improved footing and allow management to focus on the significant potential
of its market leading modular data centre solutions”.
The details of the Sydney Lease Deed of Surrender are given as follows:
DXN and the landlord of its Sydney data centre located at 5 Parkview Drive, Sydney, Olympic Park, NSW
(Sydney Site) have signed a Deed of Surrender of the Sydney Site. This will facilitate an exit from the
lease, with a deferred settlement payment over 18 months of $800,000 which includes back-rent and rent
until the settlement date.
DXN will surrender the site by the end of February 2024 and will undertake the decommissioning of its
modular data centre equipment in the facility, the cost of which it expects will be offset by proceeds of sales
of the decommissioned and repurposed modules to customers.
DXN’s exit from the lease obligations will save the Company approximately A$1.4m in cash costs per year
on a pro rata basis excluding the surrender payment. DXN will look to relocate existing customers to an
alternate data centre in Sydney, where those customers will continue to be serviced by DXN.
The announcement covers also Equity Raising, the Use of Proceeds, the Modular Division Pipeline, Costing Saving Initiatives and Data Centre Operations.
The full announcement can be found at: https://company-announcements.afr.com/asx/dxn/379e5821-88c2-11ee-b257-3a23d711c0da.pdf