X2M Connect raising up to $4.9m as momentum builds

• X2M Connect’s Capital raise to include $2.6m placement and $2.3m entitlement offer
• Funds will pay down debt and lay a runway to build on contract base in new FY
• Placement shares offered at 1.3c each, a 28% discount to X2M’s July 10 closing price

Special Report: Having locked in contracts worth $5.5 million in the 2025 financial year, internet of things technology company X2M Connect is preparing to reduce debt and build market momentum.

To that end, the company is launching a $2.6m share placement and $2.3m entitlement offer to raise $4.9m before costs.

Supported by Cygnet Capital as lead manager, X2M Connect’s (ASX:X2M) placement will offer shares at 1.3c each, a 28% discount to the company’s last closing price, alongside a 2 for 5 entitlement offer.

X2M CEO Mohan Jesudason said the placement had received high levels of support, demonstrating strong investor confidence in the company’s overall business strategy.

“The $2.6m raised in the placement, supported by a high calibre group of investors, strengthens our balance sheet and positions us to accelerate expansion across our existing markets in Asia and the Middle East,” he said.

The capital raise will eliminate the majority of X2M’s debt, leaving it well funded to execute on its strategy.

“We’ve already secured new mandates exceeding $5.5m that provide significant momentum as we head into FY26,” Jesudason continued.

“Our renewable energy AI solutions, through our partnership with Sirius Digitech, are being pursued in Taiwan while the recent addition of a public safety vertical in South Korea has significantly expanded our addressable markets.

“At the same time, our commercialisation efforts in the UAE are gaining traction.”

Asia Pacific and Middle East markets

X2M Connect has developed a patented Internet of Things (IoT) solution designed to deliver productivity improvements, cost savings and improved public safety in the utilities sector.

The company’s strategy involves tapping into artificial intelligence, renewable energy generation and battery storage markets’ demand for data collection, analytics and device control.

X2M has deployed over half a million devices connected to its IoT platform and distributed intelligence solution, with a focus on the Asia-Pacific region.

The company is expanding actively into these areas, with subsidiaries already operating in Japan, South Korea, Taiwan and China.

More recently, X2M moved into Middle Eastern markets, licensing its platform to Dicode Smart Connect Electronics LLC, a Dubai based business.

That deal has already paid dividends – Dicode Smart Connect Electronics recently secured a contract with a major UAE-based construction company to install smart gas and utility meters across 10,000 residential apartments.

The contract could generate about $400k in gross profit over the next 10 years.

This article was developed in collaboration with X2M Connect, 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.