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De.mem Limited (ASX:DEM)

ALERT: Price-sensitive ASX Announcement for DEM
Current share price for DEM : $0.089 -0.021 (-19.09%)+
Announcement
Release
3 Nov 2025 9:15AM
Price at Release
$0.110
Full Release
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Summary
De.mem Limited has completed the acquisition of Core Chemicals Pty Ltd, a Western Australian-based specialty chemicals supplier for the gold mining sector, effective 31 October 2025. The acquisition, valued at approximately $3 million, provides De.mem with increased exposure to the surging gold mining sector and significant revenue synergies through new client acquisition and cross-selling opportunities. Core Chemicals generated approximately $4 million in revenue and $730k in pre-tax profits for the 12 months ending 30 June 2025. The transaction structure includes cash and shares, with additional payments contingent on meeting profit targets and working capital adjustments. Post-acquisition, De.mem reports a strong pro-forma cash balance of $3.7 million as of 30 September 2025 and expects significant growth in adjusted EBITDA, projecting $1.6 million for the 12 months to 30 June 2025. This acquisition provides strategic expansion opportunities into the Eastern states of Australia and the Pacific region, leveraging De.mem's existing operations and customer base in the gold mining industry.
Key Points
  • Acquisition of Core Chemicals completed effective 31 October 2025.
  • Core Chemicals supplies specialty chemicals to the Western Australian gold mining sector.
  • Total consideration for the acquisition is approximately $3 million.
  • De.mem gains increased exposure to the gold mining sector.
  • Significant revenue synergies expected through new client acquisition and cross-selling.
  • Core Chemicals generated $4 million in revenue for 12 months ending 30 June 2025.
  • Pro-forma adjusted EBITDA of $1.6 million anticipated for the 12 months to 30 June 2025.
  • Strong pro-forma cash balance reported as $3.7 million as of 30 September 2025.
  • Strategic geographic expansion opportunities into Eastern Australia and Pacific region.
  • Potential for significant cost synergies and revenue growth in the gold sector.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.