• Placement to raise ~A$2.6 million from institutional and sophisticated investors
• Entitlement Offer to raise up to ~A$2.3 million for existing shareholders
• Funds to strengthen balance sheet, reduce debt, and drive business momentum

X2M Connect Limited (ASX:X2M), an Australian Internet of Things (IoT) technology company, has announced a A$2.6 million Placement to institutional and sophisticated investors, led by Cygnet Capital. The Placement will raise approximately $2.6 million through the issue of around 200 million new shares at $0.013 per share, representing a 28% discount to the last closing price. Participants in the Placement will also receive one free unlisted option per new share, with an exercise price of $0.016 and expiry on 31 December 2027. X2M is also conducting a 2-for-5 Entitlement Offer to existing shareholders on the same terms as the Placement, which is expected to raise up to approximately $2.3 million. The funds raised from the Placement and Entitlement Offer will substantially strengthen X2M's balance sheet, allowing significant reduction in the Company's debt, while also positioning X2M well for its next growth phase. X2M has recently announced contract wins exceeding $5.5 million, which, together with a stronger balance sheet, positions the Company well for the start of the 2026 financial year. The Company has withdrawn Resolution 2.4 'New Capital Raise' from its previous Notice of Meeting as it is being replaced by the new Placement and Entitlement Offer.

X2M is well-positioned to accelerate expansion across its existing markets in Asia and the Middle East, with the majority of its debt to be extinguished. The company's renewable energy AI solutions and recent addition of a public safety vertical in South Korea have significantly expanded its addressable markets.