X2M Secures $1.95M via Placement and Debt Conversion to Boost Growth
X2M Connect Limited has secured $1.95 million through a share placement and convertible note conversion, aiming to strengthen its balance sheet and accelerate growth in AI and IoT sectors.
- Placement of $1.95 million via new equity and debt conversion
- New investors primarily from Singapore and Hong Kong
- Proceeds to fund business expansion, product upgrades, and working capital
- Shareholder approval pending for majority of shares and attaching options
- Focus on AI, data aggregation, and utility sector IoT growth
Capital Raise to Strengthen Financial Position
Australian IoT technology company X2M Connect Limited (ASX, X2M) has announced a capital raise totalling $1.95 million, combining new equity investment and convertible note conversions. This move is designed to bolster the company’s balance sheet as it prepares for accelerated expansion in artificial intelligence and data aggregation ahead of the 2026 financial year.
The placement includes $0.9 million from new investors predominantly based in Singapore and Hong Kong, alongside $1.05 million from existing convertible note holders converting their debt into equity. This dual approach not only injects fresh capital but also reduces the company’s debt burden, improving financial flexibility.
Strategic Use of Funds and Growth Outlook
Proceeds from the capital raise will be allocated towards business expansion initiatives, product enhancements, and working capital requirements. X2M’s CEO, Mohan Jesudason, highlighted the significance of investor confidence demonstrated by the debt-to-equity conversions, which underpin the company’s long-term vision and momentum in the competitive IoT space.
With approximately half a million devices already connected to its platform, X2M is focused on deepening its penetration in the utility sector across the Asia-Pacific region. The company’s technology enables real-time data collection and remote control of utility meters and sensors, providing critical infrastructure clients with productivity and safety improvements.
Shareholder Approval and Attaching Options
A portion of the placement, including around 75.5 million shares and all attaching unlisted options, remains subject to shareholder approval at a meeting scheduled for late July 2025. Investors participating in the placement will receive free attaching options exercisable at $0.016 within 12 months, plus “piggyback” options exercisable at $0.03 until mid-2027, offering potential upside if the company’s share price appreciates.
The initial tranche of $0.75 million is expected to settle by late June 2025, with shares issued under the company’s placement capacity. Lead managers Spark Plus and GBA Capital will receive broker options as part of their commission arrangements.
Expanding Footprint and Market Potential
Beyond its core Asia-Pacific markets, X2M is extending its reach globally, with subsidiaries in Japan, South Korea, Taiwan, and China, and a recent licensing agreement in the Middle East through a Dubai-based partner. The company’s strategy to leverage its IoT platform for AI and renewable energy applications positions it well to capture emerging opportunities in data analytics and device control.
While the capital raise strengthens the company’s financial foundation, the pending shareholder vote and execution of expansion plans will be critical to watch as X2M navigates a competitive and rapidly evolving technology landscape.
Bottom Line?
X2M’s capital raise sets the stage for growth, but shareholder approval and execution will determine its next chapter.
Questions in the middle?
- Will shareholder approval be secured to complete the full placement and option issuance?
- How will the dilution impact existing shareholders and share price in the near term?
- What specific product enhancements and market expansions will the new funds enable?
