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DomaCom raising up to $6 million from cornerstone investor to fund growth opportunities

The funds will be used to further develop DomaCom’s fractional investment platform and grow sales in the accumulation and retirement markets.

DomaCom Ltd - DomaCom raising up to $6 million from cornerstone investor to fund growth opportunities
DomaCom will focus on building revenue by growing funds under management

DomaCom Ltd (ASX:DCL) has completed the placement of $700,000 worth of shares at 7.42 cents to HALO Technologies following a placement of $500,000 earlier this month, taking HALO’s total investment to $1.2 million.

In addition, DomaCom has also reached in-principle agreement with HALO for a proposed capital-raising as follows:

  • A proposed further placement to HALO for further shares to a maximum of $1.8 million by September 30 2019 at 7.42 cents per share; and
  • A proposed fully underwritten non-renounceable rights issue to raise a further $3 million in November 2019 at an issue price of 7 cents.

Recapitalisation for continued growth

The rights issue is proposed to be fully underwritten by Ascot Securities.

The total amount to be raised by DomaCom during this recapitalisation process is expected to be about $6 million and will be used to fund DomaCom’s continued growth including investment in its platform and growing sales in the accumulation and retirement markets via its innovative products.

A pivotal time for the business

DomaCom CEO Arthur Naoumidis said: “Following completion of these proposed capital-raisings, we will be able to focus on building revenue by growing our funds under management.

“This has occurred at a pivotal time for our business as all our key products are now operational after 7 years of development.

“In addition to helping address our balance sheet, DomaCom has also secured a well-known financial services B2C channel for its fractional property product using the DomaCom Platform and this includes appointing HALO Technologies as Prime Broker exclusively for our secondary market.”

Driving B2C and B2B distribution

HALO Technologies CEO Matthew Roberts said “We are very excited to be able to partner with this very innovative business and to be able to use our extensive investor distribution and tech capability to accelerate DomaCom’s growth and achieve a mutually beneficial outcome.

“With over $2bn in Funds Under Advice in client portfolios uploaded on to the HALO platform and ownership of the MacroVue platform, through our many synergies, we believe that we are well positioned to drive the B2C and B2B distribution of both DomaCom’s secondary market and property syndications.”

On completion of the capital-raising transactions, DomaCom proposes to appoint HALO’s CEO Matthew Roberts and George Paxton to the board of DomaCom Limited as non-executive directors.

Quick facts: DomaCom Ltd

Price: 0.08 AUD

ASX:DCL
Market: ASX
Market Cap: $16.18 m
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