X2M secures $1.4 million placement to fund data centre push
X2M Connect Limited (ASX: X2M) has received firm commitments to raise approximately $1.4 million (before costs) at $0.004 per share from sophisticated and professional investors. The placement was well supported, and the capital is directed at the company’s data centre and AI strategy.
The placement sits within a $5 million capital raise. The company also intends to undertake a non-renounceable rights issue to raise approximately $3.6 million on the same or similar terms, following the three times oversubscribed Share Purchase Plan that closed on 31 August 2026.
Funds are intended to be used for:
- Data centre sensor integration
- Data centre design consultation
- Platform enhancement
- Battery energy management systems that support data centres and smart communities
- General working capital purposes
Chief Executive Officer Mohan Jesudason said the raise is aimed at converting interest into agreements:
Mohan Jesudason, Chief Executive Officer
“Data centres and energy management are our focus areas for the Australian market and it is an area where our platform can make a difference. We have been surprised at the level of interest we are receiving from landowners and other parties looking to develop data centres. This raise will assist us in preparing for and converting these prospective opportunities into binding agreements.”
For investors, the placement provides fresh capital aimed at turning a prospective pipeline into binding agreements.
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How X2M plans to earn from data centres
The contracts and pipeline
X2M has announced two contracts of 10MW each and has three partnership agreements to drive additional data centre developments, delivering on a 200MW prospective pipeline.
The first binding data centre contract carries an estimated project cost above $250 million over a three-to-five-year delivery period, and is conditional only on development approval.
The 20MW capacity intended for the two agreements has a project cost of $500 million. It is planned to be delivered through X2M’s compute and GPU partnerships, and it is currently expected that X2M will manage elements of the full project cost and earn a margin on these projects.
The second 10MW Queensland site is under 60-day binding exclusivity, with a 2.5MW grid connection today and the remaining 7.5MW dependent on behind-the-meter renewable generation.
X2M is also expected to earn recurring revenue from AI-enabled management of the facilities, plus a potential share of revenue generated by the sale of GPU compute time.
Lower-risk regional modular approach
X2M is targeting data centre facilities in low-density population regions of Queensland and the Northern Territory, rather than large metropolitan campuses. This places less demand on the grid and requires a smaller capital commitment by data centre investors.
Power, land and government approval are assessed at every site before a binding agreement is signed. X2M also looks for developers and customers able to build their own behind-the-meter micro grid, giving the facility energy security independent of the grid and allowing the site to be scaled up beyond its approved grid capacity.
What is a data centre management platform and why energy matters
A data centre runs on power generation, battery storage, cooling, environmental sensors, metering, billing and connectivity. X2M’s patent-supported, AI-enabled platform connects any device on any network, regardless of manufacturer or communications standard, so these functions can run through a single real-time management layer.
X2M intends to provide its Managed Delivery service across the design, engineering, supply, installation and commissioning of the facility. This would be followed by ongoing AI-enabled Platform Services and management for the life of the data centre asset.
Energy is the binding constraint on data centre growth, according to the company. X2M’s platform is designed to reduce the energy required to deliver a given level of compute, and more compute from every approved megawatt is described as a key reason customers partner with X2M.
Capital raise terms at a glance
| Item | Detail |
|---|---|
| Placement price | $0.004, a 16.8% discount to the 5 day volume weighted average share price of $0.0048 |
| Placement shares | 353,244,703 fully paid ordinary shares, issued under Listing Rule 7.1 capacity |
| Attaching options | One free attaching listed X2MOA option for every two Placement shares, exercisable at $0.008, expiring 2 June 2029 (approximately 176 million) |
| Bonus shares | One for every four Placement shares (approximately 88 million) |
| Joint Lead Managers | Peak Asset Management Pty Ltd and Alpine Capital Pty Ltd |
The Joint Lead Managers will receive the following fees, to be divided between them:
- A capital raising fee of 6% (excluding GST) on all funds raised under the Offer
- A capital raising fee of 3% of funds raised under the Rights Issue, plus an additional 3% on any Rights Issue shortfall funds placed in the three months following its closure
- One listed X2MOA option for every five Placement shares issued in respect of funds raised under the Placement and the Rights Issue
- 30,000,000 fully paid ordinary shares (“Broker Shares”) for nil consideration, issued on completion of the capital raise and rights issue
All Bonus shares, Placement Options and Broker securities are subject to shareholder approval at the annual general meeting (AGM).
What happens next for X2M shareholders
The company’s indicative timetable sets out the following steps:
- Rights issue offer documentation is expected to be lodged with ASX within the next two weeks, with the rights issue intended to be launched subject to ASX guidelines.
- Allotment of shares under the Placement is scheduled for 5 November 2026, with the cleansing notice and Appendix 2A lodged the same day.
- The AGM is scheduled for 30 November 2026, where shareholder approval is sought for the Bonus Shares, Placement Options and Broker securities.
- Allotment of approved Placement Options, Bonus Shares and Broker Securities is scheduled for 2 December 2026.
The timetable is indicative and may be varied by the company. With the placement commitments in hand, X2M’s focus remains on data centres and energy management for the Australian market.
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