DomaCom secures new cornerstone investor
DomaCom, an operator of an investment platform that enables the SMSF market to make fractional investments in a range of property-related investments, has announced it has secured HALO Technologies as its cornerstone investor.
Following this, HALO Investments – a subsidiary of HALO Technologies – has subscribed to a placement of $500k and has subscribed to a further $700k of shares at 7.42 cents to take their investment to $1.2 million.
Additionally, DomaCom reached an in-principle agreement with HALO for a proposed capital-raising which included a proposed further placement of HALO for further shares to a maximum of $1.8m and a proposed fully-underwritten non-renounceable rights issue to raise a further $3m in November 2019 at an issue price of seven cents.
The total amount to be raised by DomaCom during this recapitalisation process is expected to be approximately $6m and would be used to fund a further growth including investment in its platform, and growing sales in the accumulation and retirement markets.
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 seven 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.”
AUTHOR
Oksana Patron
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
