VANCOUVER, British Columbia – TheNewswire - April 1, 2025 – Carrier Connect Data Solutions Inc. (TSX.V:CCDS) (the “Company”), an innovative Canadian data center service provider, is pleased to announce that it has signed a non-binding Letter of Intent (“LOI”) with Nexion Group Ltd. (“Nexion”) of Perth, Australia to buy their Tier II/III data center (the “Acquisition”).

 

Nexion operates a 2 Megawatt Tier II/III data center in Perth, Australia servicing the Asia Pacific region. The data center has 220 racks of space, 2 Megawatts of power, 3 diesel backup generators (gensets), and operates within an ~8000 square foot facility. The data center is the sole tenant of the building and property. The as-built replacement value of the racks, generators, cooling systems and equipment is estimated to be worth well over CAD $6 million by Carrier’s management team.

 

LOI Terms

 

Under the terms of the LOI, Carrier has 45 days to complete a comprehensive business and technical due diligence of Nexion’s business. Upon completion of the Acquisition, Carrier will pay Nexion AUD $2.5 million, including AUD $200,000 upfront, AUD $100,000 in 6 months, and AUD $2.2M amortized into monthly payments for a 25 year term at 9% interest, as a vendor take back note.

 

Management Commentary

 

“We are excited to announce the LOI with Nexion, as we predict that it will show that our thesis of accumulating non-core assets from 3rd party technology companies for mutual benefit has significant merit in the market. Nexion’s parent company has an alternative focus to data center ownership and operation now, whereas the data center is a perfect complement to our Canadian operations. With an Australian footprint, we can offer customers on both continents primary connectivity, disaster recovery and traditional data center services. Building a new 2 Megawatt data center today would cost between $20M and $25M, and would not be a tested and hardened facility on day 1. By acquiring Nexion’s data center, we have a built, tested and operating facility with a long standing customer base that is already profitable on a stand alone basis. The ROI for Carrier is expected to be substantial on day 1, from an asset value alone, and the data center is only operating at 25% of total capacity leaving very substantial room to drive revenue and EBITDA growth,” commented Mark Binns, CEO. “We look forward to completing the due diligence in a timely fashion, and adding Nexion’s data center to our portfolio.”

 

About Carrier Connect Data Solutions Inc.

 

The Company operates a Tier II/III data center located in downtown Vancouver, British Columbia, and specializes in delivering co-location and data center solutions to service providers, enterprises and small businesses. Data centers are the physical locations that store computing machines and their related hardware equipment, such as servers, data storage drives, and network equipment. As a carrier-neutral facility, Company’s systems are fully independent and owned outright within its leased space. The current principal market for the Company is the Vancouver Metropolitan Area, where it serves clients who use its facility either as their primary datacenter or as an ancillary site depending on their needs.

 

ON BEHALF OF THE BOARD OF DIRECTORS

 

“Mark Binns”

 

Mark Binns, CEO

 

For further information, please contact:

 

Attention: Mark Binns, CEO

Email: mark@carrierconnectds.com  

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.

 

Cautionary Statement Regarding Forward-Looking Information

 

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, statements with respect to the completion of the Acquisition. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof. Such forward-looking information is based on numerous assumptions, including among others, that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward-looking information are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information also involves known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, reliance on key management and other personnel, and the risk factors with respect to the Company set out in the Company’s filings with the Canadian securities regulators and available under the Company’s profile on SEDAR+ at www.sedarplus.ca.

 

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.