News: IM Medical raising $6M for data centre acquisition

IM Medical (ASX:IMI) is seeking to raise between $6 million and $8 million at a post consolidation price of $0.20.

The raising is underwritten up to the minimum of $6 million.

Investors will also receive 1 free listed option for every 3 shares subscribed exercisable at $0.25 on or before 30 September 2017.

Proceeds of the raising will be directed towards proposed acquisition of ADX Management, which is being acquired in exchange for $6 million worth of IMI shares based on an issue price of $0.002.

Funds will also be used to invest in $3 million in convertible notes in the trust and for general working capital purposes.

The company has entered into an agreement with Patersons Securities to underwrite the capital raising up to the minimum raising of $6 million.

ADX is a specialist management company, manager of the Australian Data Exchange Trust, and is focussed on becoming a leading provider of data centre, disaster recovery and technology solutions in Australia.

The Trust has entered into an exclusivity agreement to acquire a 24,000 square metre property at Tullamarine in Victoria for conversion into a major data centre.

IMI, through ADX, expects to receive management fees as manager of the Trust, based on the Trust's gross asset value, property acquisition and fit-out fees, and performance fees.

The Trust is also in discussions regarding other suitable properties for conversion and development into data centres,

IMI will receive a Responsible Entity fee from the Trust equivalent to 1% of the gross assets of the trust per annum.

The Australian data centre services market is forecast to hit revenues of over $1.7 billion by 2020, and it is estimated that $8 billion worth of additional data centre facilities will be needed.