DXN LIMITED — Capital/Financing Update 2019

Oct 13, 2019

14 October 2019

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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.

A copy of the Prospectus is available on ASX’s and DXN’s website. Eligible Shareholders will be mailed a Prospectus together with an Entitlement and Acceptance Form no later than 21 October 2019. Your entitlement will be set out on the personalised Entitlement and Acceptance Form accompanying the Prospectus.

For the purposes of calculating each Eligible Shareholders’ entitlement, fractions of entitlements have been rounded up to the nearest whole number of New Shares.

Actions required of Eligible Shareholders

There are a number of actions Eligible Shareholders may take:

• You may take up all or some of your rights to subscribe for New Shares pursuant to the Prospectus ( Entitlements ). To take up all or some of your Entitlements you will need to ensure

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

your application money for the Entitlements you wish to take up is received by Automic Registry Services ( Share Registry ) by no later than 5.00pm WST on 4 November 2019, by either completing and returning your Entitlement and Acceptance Form together with your application money (at $0.055 per Share) or making a payment by BPAY in accordance with the instructions on your Entitlement and Acceptance Form.

• You may take up all of your Entitlements and apply for additional Shares (which will be issued at the sole discretion of the Company (in consultation with the underwriter)). To take up all of your Entitlements and apply for additional Shares you will need to ensure your application money for the Entitlements you wish to take up is received the Share Registry by no later than 5.00pm WST on 4 November 2019, by either completing and returning your Entitlement and Acceptance Form together with your application money (at $0.055 per Share) or making a payment by BPAY in accordance with the instructions on your Entitlement and Acceptance Form.

• You may do nothing. If you choose to do nothing with your Entitlements, while you will continue to hold the same number of Shares, your interest in the Company will be diluted and you will receive no value for your Entitlement.

Key dates for the Offer

Event	Date
Lodgement of Prospectus with the ASIC	11 October 2019
Lodgement of Prospectus & Appendix 3B with ASX	11 October 2019
Notice sent to Option holders	11 October 2019
Notice sent to Shareholders	14 October 2019
Ex date	16 October 2019
Record Date for determining Entitlements	17 October 2019
Prospectus sent out to Shareholders & Company announces this has	21 October 2019
been completed
Opening Date	21 October 2019
Last date to extend the closing date	30 October 2019
Closing Date	4 November 2019
Shares and New Options quoted on a deferred settlement basis	5 November 2019
ASX notified of under subscriptions	6 November 2019
Issue date	11 November 2019
Quotation of Shares issued under the Offer	12 November 2019

If you have any queries concerning the Rights Issue, or the action you are required to take to subscribe for New Shares, please contact your financial adviser or George Lazarou, DXN’s Company Secretary, on +61 8 9288 1870.

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