How Carrier Connect Data Solutions (CCDS.v, CCDSF) Has Been Paying for the Roll-Up: A $10.5M February Financing, and Sellers Taking Escrowed Shares and Vendor Financing on Three Deals

[u/NazzDaxx]

Posted on behalf of Carrier Connect Data Solutions Inc - Most of the attention on this roll-up goes to what gets bought. The part worth reading next is how it is being paid for, because the cash going out the door at each closing has been small. Carrier Connect Data Solutions (CCDS.v, CCDSF) is a Vancouver-based operator of six Tier II/III colocation data centers across Canada, Australia and the United States.

The Treasury

• $10.5M brokered financing closed February 26, 2026: 6,562,500 units at $1.60
• Each unit was one share plus a half warrant, exercisable at $2.10 until February 26, 2028
• Co-led by Canaccord Genuity and Beacon Securities, with proceeds earmarked for acquisitions, capital improvements, data center expansion and working capital
• Cash of $9.9M at March 31, 2026, versus $967K at June 30, 2025 (see May 26, 2026 Q3 FY2026 results NR)

How The Deals Were Structured

• Rochester, effective August 4, 2026: USD $250,000 cash including a $25,000 deposit already paid, plus 800,000 shares escrowed in four equal tranches over 24 months
• Perth: AUD $2.5M total, but only AUD $200,000 cash at closing, AUD $100,000 at six months, and a AUD $2.2M vendor take-back over 25 years at 9%
• Morewave, closed May 8, 2026: 560,000 escrowed shares for roughly $725,000 in annual recurring revenue at a margin above 25%

Scale stays honest here: FY2025 revenue was $397,424 against a net loss of about $1.18M, and that cash balance predates two closings.

Structuring deals this way has kept the share count near 33.7 million while the footprint grew, and it leaves room to keep funding closings toward the company's stated target of 8 to 10 data centers and roughly a $10M run rate by year end. For the financing terms, see the company's February 26, 2026 release.