Surrender of lease for Bibra Lake Premises
Released
Released
Announcement PDF
ASX Announcement
4 September 2024
SURRENDER OF LEASE FOR BIBRA LAKE PREMISES
Highlights:
•
Bibra Lake lease surrendered resulting in ~$350k annual savings.
• Adisyn to continue providing data centre solutions through third-party providers.
• Consistent with Company’s strategy of reducing costs and moving to capital light model.
• Continued focus on strategic partnerships to deliver next generation data centre and
cybersecurity solutions in an AI-driven world.
• The lessor has agreed to indemnify Adisyn against any potential damages if found liable in the
legal matter with Cannontech Technologies Ltd.
Adisyn Ltd (ASX: AI1) (“Adisyn” or the “Company”) is pleased to announce it has successfully
negotiated a surrender of its Bibra Lake lease (ASX: 31 July 2024), resulting in approximately $350k in
savings per year.
Adisyn and the lessor of the Bibra Lake data centre in WA have signed a surrender of lease agreement.
The Agreement allows Adisyn to exit from the lease on 18 October 2024 and is expected to result in
annual savings of ~$350k per year, net of costs expected for a lease of the Company’s new corporate
office. The annual savings will be achieved from the date of the exit of the Bibra Lake lease.
The Company will continue to offer data centre services to new and existing customers through the
use of third-party data centre providers, and will look to relocate all existing profitable customers to
an alternative data centre in Perth, where those customers will continue to be serviced by Adisyn.
Adisyn will undertake the decommissioning and sale of plant and equipment at the Bibra Lake site,
the cost of which it expects will be offset by proceeds of sales of the decommissioned plant and
equipment.
The move is consistent with Adisyn’s focus on moving to a capital lite model (ASX: 15 Apr 2024, 1 May
2024), and provides the Company with the ability to prioritise it’s business development efforts
towards SME’s in the defence industry supply chain, and continue engaging in strategic partnerships
to develop solutions that leverage the Company's learnings in data centres and cyber security, such
as the collaboration with 2D Generation (ASX: 15 July 2024).
AI1 Managing Director Blake Burton said: "We're delighted with the outcome of our negotiations
which will allow AI1 to reduce expenses while being able to deliver capital light data centre and cyber
security solutions to our customers. In addition, it frees up time and resources to apply to strategic
Adisyn Ltd | ACN 155 473 304 | 1300 331 888 | 27 Aspiration Circuit, Bibra Lake WA 6163 | adisyn.com.au
collaborations, including with 2D Generation, where we can use our learnings from data centres to
develop data centre and AI related technologies to solve current industry challenges."
Update on legal proceedings
On 17 March 2023, the Company announced it had been named as second defendant in a dispute
between the lessor of the Bibra Lake Premises, and Cannontech Technologies Ltd, in respect of the
ownership of certain equipment located at the Premises (‘Legal Matter’). Further updates were
provided to the market in announcements dated 29 September 2023 and 28 February 2024.
As a condition of the surrender of lease, the lessor has agreed to indemnify Adisyn against any
potential exposure to damages for the Legal Matter in the event that Cannontech Technologies Ltd
are successful in their proceedings. Adisyn will also file a notice of intention to abide, the effect of
which is that Adisyn will not take any further part in the Legal Matter and accept any order made by
the Court with the benefit of the indemnity from the lessor.
-ENDSThis announcement has been approved for release by the Board of Adisyn Ltd.
Further Information:
Blake Burton
Managing Director, Adisyn
investors@adisyn.com.au
1300 331 888
About Adisyn
Adisyn (ASX: AI1) is a provider of managed technology services and solutions, primarily targeting the
SME market. The company aims to be the preferred sovereign provider for SMEs in the Australian
defence industry supply chain. Adisyn’s offerings include a range of solutions tailored to this growing
market segment, leveraging internal capabilities and strategic partnerships, particularly in
cybersecurity and AI.
Forward-looking statements:
Statements contained in this release, particularly those regarding possible or assumed future
performance, revenue, costs, dividends, production levels or rates, prices, or potential growth of
Adisyn Ltd are, or may be, forward-looking statements. Such statements relate to future events and
expectations and as such, involve known and unknown risks and uncertainties. These forward-looking
statements are not guarantees or predictions of future performance and involve known and
unknown risks, uncertainties, and other factors, many of which are beyond the Company's control,
and which may cause actual results to differ materially from those expressed in the statements
contained in this release.
Adisyn Ltd | ACN 155 473 304 | 1300 331 888 | 27 Aspiration Circuit, Bibra Lake WA 6163 | adisyn.com.au
The Company cautions shareholders and prospective shareholders not to put undue reliance on
forward-looking statements, which reflect the Company's expectations only as of the date of this
announcement. The Company disclaims any obligation to update or revise any forward-looking
information, whether as a result of new information, future events or otherwise, except as required
by law.
Adisyn Ltd | ACN 155 473 304 | 1300 331 888 | 27 Aspiration Circuit, Bibra Lake WA 6163 | adisyn.com.au
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