DXN LIMITED — Capital/Financing Update 2019

Oct 13, 2019

==> picture [112 x 58] intentionally omitted <==

14 October 2019

Dear Shareholder,

DXN Limited – pro-rata non-renounceable rights issue

As announced on 9 October 2019, DXN Limited (ACN 620 888 548) ( DXN or the Company ) is undertaking a 1 for 4 pro-rata non renounceable rights issue ( Rights Issue or Offer ) of approximately 90,567,933 fully paid ordinary shares ( New Shares ) to raise approximately $4,981,236.

The price of the New Shares under the Offer is 5.5 cents per New Share ( Issue Price ). The Company will also issue 1 free attaching listed option ( New Option ) for every 1 New Share subscribed for and issued, exercisable at 10 cents per New Option on or before the date which is 12 months from the date of issue. The Company lodged a prospectus for the Offer ( Prospectus ) with ASIC and ASX on 11 October 2019.

The Offer is fully underwritten by Pinnacle Corporate Finance Pty Ltd. The terms of the underwriting are set out in section 9.4 of the Prospectus.

The funds raised under the Offer will be used for completion of an additional 400kW of “ready for service” rack space to increase the capacity to 800kW of “ready for service” rack space at the Homebush datacentre (DXN-SYD01), as well as a high voltage upgrade to take the power capacity to 2.5MW at DXN-SYD01, working capital for the DXN Modules business and for general working capital requirements, as well as satisfying the costs of the Offer.

The Offer is being made to all shareholders of the Company ( Shareholders ) named on its register of members at 5:00pm WST on 17 October 2019, whose registered address is in Australia, New Zealand or Singapore.

New Shares will rank equally with all fully paid ordinary shares in the capital of the Company ( Shares ) already on issue.

Following completion of the Offer, the Company will have issued approximately 90,567,933 New Shares resulting in total Shares on issue of approximately 452,839,665.

Ineligible shareholders

A Shareholder who has a registered address outside Australia, New Zealand and Singapore ( Ineligible Shareholder ) will not be eligible to participate in the Offer.

You are not eligible to participate in the Offer and you will not be sent a copy of the Prospectus. This decision has been made pursuant to Listing Rule 7.7.1(a) of the ASX Listing Rules after taking into consideration the costs of complying with legal and regulatory requirements in jurisdictions outside of Australia and New Zealand compared with the small number of Ineligible Shareholders and the number and value of New Shares to which they would otherwise be entitled.

If you have any queries concerning the Rights Issue, please contact your financial adviser or George Lazarou, DXN’s Company Secretary, on +61 8 9288 1870.

DXN Limited ABN: 46 620 888 548

9 Mumford Place, Balcatta, Perth, Western Australia, 6021 W: dxn.solutions | T: 1300 328 239 | E: info@dxn.solutions

Yours sincerely,

Douglas Loh Chairman

DXN Limited ABN: 46 620 888 548 9 Mumford Place, Balcatta, Perth, Western Australia, 6021 W: dxn.solutions | T: 1300 328 239 | E: info@dxn.solutions