On behalf of the directors of NEXION Group Ltd (Company or NEXION), it is my
pleasure to invite you to become a shareholder in NEXION.
NEXION provides Hybrid Cloud infrastructure used by corporations to host their
core business systems. Hybrid Cloud describes the combined use of dedicated
private compute infrastructure with publicly available Cloud services such as
those offered by Amazon and Microsoft to optimise the price and performance
of corporate IT systems. Hybrid Cloud is one of the fastest growing segments of the
IT industry today as corporations accelerate their migration from traditional owneroperated compute resources to pay-as-you-go platforms.
At NEXION we are proud of our rapid rate of growth. Since establishing the
business in 2017, the team has achieved an annual compound growth rate of
137% and established two new OneCloud Nodes (OneCloud Nodes) in Perth and
Melbourne. The next phase of our growth will see us deploy to additional
Australian locations, supplement these nodes with software-defined wide-area
network (SD-WAN) capability then expand globally to deploy OneCloud Nodes in
in regions that may include New Zealand, Africa, North America and Europe.
NEXION works closely with tier-one global technology manufacturers and
developers to create our core platform and deploy our OneCloud Nodes. Our
team led by Paul Glass and Kevin Read plans to expand NEXION’s reach across
Australia and globally via acquisition of similarly focussed information technology
service providers. Growth via acquisition will maximise the speed at which NEXION
can roll-out new OneCloud Nodes and on-board new customers in national and
international locations. A key feature of our business model is long-term
contracted recurring revenues with high gross margins. As we bring more service
providers into NEXION and migrate more customers to OneCloud, our recurring
revenue base should continue to grow.
This Prospectus is seeking to raise a minimum of $5M and a maximum of $8M via
the issue of Shares at an issue price of $0.20 per Share under the Offer. The purpose
of the Offer is to provide funds to implement the Company’s business strategies
(explained in Section 5).
The Board have significant expertise and experience in the Information
Technology industry and will aim to ensure that funds raised through the Offer will
be utilised in a cost-effective manner to advance the Company’s business.
This Prospectus is issued for the purpose of supporting an application to list the
Company on ASX. This Prospectus contains detailed information about the
Company, its business and the Offer, as well as the risks of investing in the
Company, and I encourage you to read it carefully. The Shares offered by this
Prospectus should be considered highly speculative.
I look forward to you joining us as a Shareholder and sharing in what we believe
are exciting and prospective times ahead for the Company. Before you make
your investment decision, I urge you to read this Prospectus in its entirety and seek
professional advice if required.
Peter A. C. Christie