Openn Negotiation Ltd (ASX:OPN), an Australian property technology company, has been selected to participate in REACH Canada 2022 accelerator program through its wholly-owned subsidiary, Openn USA Inc.
OPN offers a proprietary cloud-based software platform to support real estate agents in selling property online with greater transparency.
The Openn platform aims to facilitate a negotiation process, featuring streamlined digital contracting and automated communication tools, which enhances a property transaction. The software provides buyers with real-time feedback through their device on how much competition exists and where their price stands in the negotiation.
“Opportunity to innovate”
OPN was selected by REACH Canada Accelerator Ltd, a Second Century Ventures company. REACH leverages 100 worldwide partnerships in 85 countries and an unparalleled network of executives (the REACH Accelerator network) within real estate and adjacent companies to help launch and accelerate the most promising companies in real estate through an intensive event-based program.
“We believe Openn has demonstrated great potential to date and has significant opportunity to innovate and grow even further,” REACH Canada managing partner Lynette Keyowski said.
“The achievement of greater transparency and efficiency in a real estate transaction, through a single platform, is optimal for all parties and aligns directly with our objectives to enhance consumers' experience via the real estate community.
“We are looking forward to working with Openn to help them achieve their goals and execute on their vision in this market.”
First invited to multiple programs
Openn USA has entered into a Participation Agreement with REACH Canada in regard to the Accelerator Program, which will see Openn USA representatives participate in an eight-month curriculum focused on revenue growth, strategic planning, capital, and building networks and strategic relationships.
“Openn is extremely honoured to be accepted into the REACH Canada program, Openn managing director Peter Gibbons said.
"Openn is the first company to be invited into multiple REACH programs internationally, which provides us with great confidence that the platform we have developed is genuinely transformational for the real estate sector.
“The North American market is extremely important to us and being able to work with the REACH team and their extensive network underpins our market entry and tailored value proposition to maximise market acceptance and growth.
“As we have found through our experience of partnering with REACH Australia, participation in the REACH Canada program will deliver unparalleled opportunities and access to new markets and partnerships.”
Openn will pay a US$250,000 program fee to REACH and its affiliates by way of instalments with US$100,000 payable up-front, with the balance to be paid in monthly instalments of US$50,000 each.
Equity investment
OPN has also entered into a binding side letter with REACH under which REACH affiliates will make an equity investment in Openn by subscribing for 2,060,157 fully paid ordinary shares in OPN at an issue price of A$0.20 per share.
Shares will be issued under the company’s capacity pursuant to ASX Listing Rule 7.1.
The subscription represents a US$300,000 (A$412,031.31) investment into the company on the following key terms:
- A subscription by REACH Canada 2020 Ventures Ltd for US$100,000 worth of shares at an issue price of A$0.20 per share; and
- A subscription by REACH Ventures, LLC for US$200,000 worth of shares at an issue price of A$0.20 per share.
- For the purposes of calculating the number of shares to be issued under the subscription, the parties have applied the United States dollar to Australian dollar exchange rate of 0.7281 as reported by the Reserve Bank of Australia on October 7, 2021.
- The shares will be issued on or after October 22, 2021.
- The parties will work together with a view to recording the subscription terms in more fulsome and precise detail by way of formal share subscription agreements. If the share subscription agreements are not executed within 30 days, either party may terminate the side letter.
While Openn is confident the subscription and participation agreements will be executed, the subscription may not proceed in the event this does not occur.