leadf
logo-loader
viewDomaCom Australia Ltd
(
ASX:DCL
)

DomaCom starts new financial year in much better position as it progresses AustAgri Group Ltd transaction settlement

Its cash position of $353,000 as at end of June will be further boosted by its proposed $1.998 million private placement. 

DomaCom Ltd starts new financial year in much better position as it progresses AustAgri Group Ltd transaction settlement
Its cash position of $353,000 as at end of June will be further boosted by its proposed $1.998 million private placement

DomaCom Australia Ltd (ASX:DCL) has been able to start the new financial year in a “very much better position” as it progresses the AustAgri Group Ltd transaction towards settlement. 

The fractional investment platform provider’s DomaCom Equity Mortgage product is also ready for an August 2021 launch. 

In its June quarterly report, the company said its funds under management (FUM) grew by 10% to $84.4 million from the March 2021 quarter. 

Its cash position of $353,000 as at end of June will be further boosted by its proposed $1.998 million private placement. 

DomaCom shares will remain suspended until the completion of the capital raising in compliance with Listing Rule 12.2. 

New financial year

DomaCom chief executive officer Arthur Naoumidis said: “The June quarter has been a very challenging quarter for the company and I am pleased to be able to start the new financial year in a much better position than we faced in May and June.

“I look forward to updating our shareholders on the outcome of the AustAgri transaction during these next few weeks.”

AustAgri Transaction update by end July

The company expects to update investors on the outcome of its sub-fund to acquire AustAgri Group.

DomaCom will hold an extraordinary general meeting (EGM) to re-approve the AustAgri Transaction.

This is because although it was previously approved in the EGM on 21 October 2020, the delay in completing the transaction, has resulted in DomaCom now requiring to seek reapproval.

DomaCom has amended the AustAgri revenue recognition agreement to as follows:

  • AustAgri shareholder approval now requires that at least 75% of AustAgri shareholders agree to their shares being exchanged for units in the new DomaCom sub-fund; and
  • A termination clause has been included to allow for an $8.5 million termination fee payable to DomaCom if AustAgri does not migrate to the DomaCom Fund after the settlement of the acquisition of Cedar Meats.

The commercial terms of the revenue recognition agreement otherwise remain unchanged.

Equity mortgage product development

DomaCom has also finalised the development of the Equity Mortgage product that will support the Crescent Finance Shariah-compliant house financing solution.

The product is expected to be operational by early August 2021.

Private placement boost

The company is undertaking a non-underwritten private placement to sophisticated and wholesale investors to raise up to $1,998,503 before costs through the issue of up to 30,506,852 ordinary shares at a price of $0.06551 per share.

Further, DomaCom proposes to carry out a non-underwritten 1-for-5 non-renounceable Entitlement Offer at a price of $0.06551 per share in August 2021.

DomaCom will update the market with further information when available.

Secured convertible notes terms variation

The company has also renegotiated the terms of the 2,950,000 secured convertible notes, with the noteholders conditionally agreeing to extend the maturity date to July 1, 2022, from December 7, 2021.

Also, the conversion price has been amended from $0.10 to $0.06551.

The noteholders have also conditionally agreed to waive the technical defaults that occurred as a result of DomaCom being suspended for more than five days in the previous 12 months.

The variations are subject to a number of conditions precedent, which includes the re-commencement of trading of the company’s shares.

Quick facts: DomaCom Australia Ltd

Follow
ASX:DCL

Price: 0.065 AUD

Market Cap: $19.88 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...

FOR OUR FULL DISCLAIMER CLICK HERE

DomaCom CEO says deal with BlueCHP is great solution for affordable housing...

DomaCom Limited's (ASX:DCL) Arthur Naoumidis speaks with Proactive's Andrew Scott following the news they've partnered with leading Australian community housing provider (CHP) BlueCHP Limited, to deliver up to $250 million in affordable housing for essential workers in 2021. The fractional...

on 9/11/20

3 min read