D Comm Infrastructure Pty Ltd signed a binding agreement to acquire Non-core infrastructure assets of DC Two for AUD 3.1 million on February 27, 2023. Agreement subject to conditions precedent. As part of the disposal, the DC Two will also transfer to DComm its non-strategic Modular customer agreements and contracts which contributed AUD 1.17 million revenue for the December 2022 half year period.

Subject to completion of this transaction, the DC Two will receive cash consideration in the amount of AUD 3 million (before costs), enabling a strong acceleration of its growth objectives within the cloud microservices sector, including the assessment of several M&A growth opportunities. An initial non-refundable deposit of AUD 0.02 million and a refundable exclusivity deposit of AUD 0.08 million. Funds from the sale will be applied towards items including sales and marketing, technical product and service development, technical staff salaries and other staffing costs, the paydown of debt secured against the Modular Assets and general working capital.

The transaction is subject to the completion of due diligence, third Party Consents and Approvals where the parties obtaining, where applicable, all other regulatory consents and approvals that may be required for the parties to complete the proposed transaction. As of June 8, 2023, due diligence has been satisfied. The DC Two expects the DComm Agreement to complete early to mid Q4 FY2023.

As of June 8, 2023, the completion of this transaction is expected by the end of July 2023.