DC Two raises $2.5 million, eyes data centre growth
DC Two has raised a solid $2.5 million to accelerate its plans to become a major data centre player.
The company will issue 16,666,666 new fully paid ordinary shares at an issue price of $0.15 per share – with a 1:2 free attaching option exercisable at $0.30/share expiring two years from the date of issue.
“We are delighted with the outcome of the placement, which has secured interest from new and existing investors who are committed to our vision of becoming a major player within the Australian data centre sector and recognise DC Two’s potential,” DC Two managing director Justin Thomas said.
“This funding will unlock our ability to grow the company, maximise shareholder return and scale our presence in key markets.”
The funding will be used to complete Tier III accreditation of its Bibra Lake data centre, fulfill an estimated $2.7 million in existing contracts, and expand the sales team to drive further growth – with a focus on enterprise customers.
DC Two (ASX:DC2) will complete the placement in two tranches, with Tranche 2 shares and all options subject to shareholder approval at the AGM in November 2021.
The Bibra Lake data centre site is currently online, generating revenue and is hosting the company’s new cloud platform.
DC2 is planning to scale its offering on a per rack basis for co-location and specialised cloud hosting services.
The facility has the initial potential capacity to house up to 400 racks, which will be bought online in a staged approach and in line with future customer contracts.
The data centre is also set to be the only Tier III facility and ISO 27001 ISMS accredited cloud platform provider in Western Australia – providing DC2 with a competitive edge when tendering for mid-market and enterprise customers requiring Tier 3 compliance, security and access accreditations.
The Tier 3 design accreditation process is expected to be complete by the end of 2021, with the goal of completing construction accreditation during the first half of 2022.
And once Bibra Lake is operating at full capacity, DC2 anticipates only limited CAPEX will be required to operate.
This article was developed in collaboration with DC Two, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.