DomaCom Ltd (ASX:DCL) sub-fund’s acquisition of AustAgri Group Ltd (AAGL) is progressing with an outcome expected over the next few weeks.
AustAgri is in the final stages of settling the Cedar Meat acquisition, which forms the first part of the AustAgri 'paddock to plate' roll-up.
DomaCom, a fractional investment platform provider, is also finalising the amendments to the DomaCom Fund to support the Equity Mortgage product.
Focus on AustAgri transaction
The company's chief executive officer Arthur Naoumidis said: “The March quarter has seen us focus on the AustAgri transaction, which has a complex series of underlying business and property transactions that had to be synchronised.
“Whilst delays have been encountered the transaction is progressing with an outcome expected over the next few weeks.”
DomaCom will update investors on the finalisation of the replacement lending facility, and if it completes, the conclusion of the AAGL transaction to purchase Cedar Meats.
Equity mortgage product
During the March quarter, DomaCom continued to progress the development of the equity mortgage product that will support the Crescent Finance Shariah-compliant house financing solution, with the changes to the DomaCom Fund constitution and disclosure documents being finalised.
These changes are expected to be implemented during May/June 2021.
Syndication business
The March quarter also saw progress in its normal syndication business with:
- The first two syndications of the development of National Disability Insurance Scheming (NDIS) investment properties with another 12 being planned from the one adviser firm;
- The syndication of its $5 million-plus solar farm is in progress; and
- Investor presentations have begun for the first time since the COVID-19 pandemic hit, with a focus on the affordable housing and solar farm transactions
Financials
In the quarter, corporate funds under management increased to A$76.7 million, a 19% increase for the 12 months since March 31, 2020.
DomaCom continued to carefully control costs during the quarter with net cash used in operating activities falling by $223,000 during the quarter ended March 31, 2021, mainly due to the previous quarter including the payment of previously deferred employee tax (PAYG) under the Australian Taxation Office COVID-19 business support initiatives.
The company’s cash position at the end of the March quarter was $1.3 million.