X2M secures $2m placement to fund data centre and AI push
X2M Connect Limited (ASX: X2M) has received firm commitments to raise approximately $2 million (before costs) through a placement to sophisticated and professional investors, with the proceeds earmarked to accelerate the company’s push into data centre and AI energy management infrastructure.
The placement shares will be issued at $0.004 per share, representing a 17.5% discount to the 5-day volume weighted average price (VWAP) of $0.00485.
The raise carried a $1.5 million minimum and, according to the company, was well supported.
X2M also intends to follow the placement with a fully underwritten Securities Purchase Plan (SPP) targeting approximately $1 million on the same or similar terms, giving existing shareholders the opportunity to participate on an equal footing.
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Where the money is going, data centres take priority
The placement strengthens X2M’s balance sheet and funds its build-out into what the company describes as the fastest growing infrastructure sector in the country. Proceeds are directed toward:
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Data centre sensor integration and platform enhancement
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Energy management systems and battery storage for data centre precincts and smart communities
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General working capital purposes
X2M “intends to be part of the data centre infrastructure eco system”, specifically in the provision of energy management systems and monitoring of sensors within a data centre and its precinct.
The company announced its first partnership agreement directed at its data centre development business in June (refer ASX announcement 11 June 2026). X2M has also partnered with Resi Ventures to develop data centre and energy infrastructure precincts in regional Australia.
The Resi Ventures data centre partnership, announced in June 2026, underpins the first physical deployment of X2M’s energy management platform across a planned regional precinct targeting up to 100MW of capacity supported by battery storage and renewable energy connections.
X2M is targeting a 10 to 20% reduction in data centre precinct energy costs. The opportunity is sizeable: Australian data centre and connectivity infrastructure investment is projected to require up to $135 billion by 2035.
A revenue base already in place
X2M entered FY27 with approximately $3 million in already-contracted revenue, including the recently announced $1.1 million City of Seoul contract for a further 50,000 HelpMe devices.
The pivot is supported by an existing utilities business that generated $7.2 million of unaudited revenue in the nine months to 31 March 2026, ahead of full-year FY25 revenue of $6.5 million, with progress being made toward positive cash flow.
How X2M’s platform fits into data centre infrastructure
For investors less familiar with the company, X2M’s core offering is a patent-supported, AI-enabled platform that connects any device on any network, regardless of manufacturer or communications standard.
In a data centre precinct, that means power generation, battery storage, cooling, environmental sensors, metering, billing and connectivity can all run through a single real-time management layer. This converts raw device signals into the structured, AI-ready data that AI management applications are then built on.
The company’s role is intended to begin at the design stage, continue through construction and extend into ongoing platform operations, generating platform and SaaS revenue for the life of the facility.
The Ballarat data centre precinct reached its first physical milestone when Resi Ventures settled on land approximately 10 kilometres from the CBD, converting a partnership announcement into a tangible development asset with a defined 10-100MW capacity target.
For shareholders, the significance lies in the recurring, long-duration revenue attached to a fast-growing infrastructure sector.
Mohan Jesudason, CEO
“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 spent more than a decade proving we can connect, process and act on real-world data at industrial scale, and that is precisely the problem every megawatt of data centre capacity has. Once progressed in Australia, we will look to taking our solution into other markets where we operate.”
Capital raise terms and what shareholders get
The raise is structured in two stages: a placement now, followed by an intended fully underwritten SPP. The key terms are summarised below.
| Term | Detail |
|---|---|
| Offer structure | Placement to sophisticated and professional investors, followed by an intended fully underwritten Securities Purchase Plan |
| Amount raised | Approximately $2m (placement) plus approximately $1m (SPP) |
| Issue price | $0.004 per share, a 17.5% discount to the 5-day VWAP of $0.00485 |
| Placement shares | Approximately 390 million fully paid ordinary shares (234,869,700 under Listing Rule 7.1; 156,579,800 under Listing Rule 7.1A), with a further approximately 110 million shares subject to shareholder approval |
| Attaching options | One free attaching listed option (ASX: X2MOA) per placement share, exercisable at $0.008, expiring 2 June 2029 |
| Bonus shares | One bonus share for every four placement shares (approximately 125 million subject to approval) |
| Shareholder approval | General meeting on or about 11 September 2026 for approximately 110m placement shares, all bonus shares, placement options and broker securities |
The approximately 500 million free attaching options and 125 million bonus shares are subject to shareholder approval at the 11 September 2026 meeting.
Peak Asset Management and Alpine Capital acted as Joint Lead Managers (JLMs) to the placement. Their fees include:
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A capital raising fee of 6% (excluding GST) on all funds raised through JLM-introduced funds
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Broker shares scaled between 40 million and 60 million depending on the total amount raised under the Offer and SPP
Key dates for shareholders
The following indicative timetable was provided by the company and may be varied.
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SPP record date, 5.00pm AEST on 23 July 2026
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Announcement of Placement and fully underwritten SPP, 24 July 2026
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SPP Offer opens, 10 August 2026
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SPP closes, 31 August 2026
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Announcement of SPP results and allotment of SPP shares, 7 September 2026
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EGM held, 11 September 2026
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Allotment of approved placement shares, placement options, bonus shares and broker securities, 18 September 2026
Why it matters for investors
The raise ties several threads together: fresh capital, a decade of proven device-connection capability, a first data centre partnership, approximately $3 million in contracted FY27 revenue, and exposure to a market projected to require up to $135 billion of investment by 2035.
The planned SPP gives existing shareholders the chance to participate on the same or similar terms, placing them on equal footing with placement investors.
The next step is executing the Australian data centre strategy, with management flagging an intention to expand into other markets where X2M already operates, including Japan, South Korea, Taiwan and the Middle East.
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