DomaCom Australia Ltd (ASX:DCL) is seeking to raise up to $4.8 million through a private placement for sophisticated and professional investors at an issue price of $0.066 per share.
Notably, this two-tranched placement will position the company for an application to relist on the ASX.
Looking ahead, DomaCom believes that the funds raised through the placement will provide a strong financial base and further opportunities to grow and scale the company.
Two-tranche placement
DomaCom CEO John Elkovich said: “We are pleased that we have begun the capital raise and are able to announce the initial commitments under Tranche 1.
“The company’s board and leadership team are now working diligently towards obtaining the full $4.8 million.
“The new capital resources being raised under Tranche 1 and Tranche 2 will allow us to request relisting to the ASX.
“In the meantime, our team have and will continue to work hard growing the business.
“As of April 27, 2022, our Funds under Management has grown to $118.6 million, an increase of 49.2% in the last 12 months.
“Customer accounts have continued to grow, totalling 1,633 as at end of March 2022, up 11.5% in the last 3 months.
“Over coming weeks, we look forward to updating investors on the progress of DomaCom’s current capital raising and then once finalised, providing more detail on the strategy now being developed by the company’s senior leadership team.”
Placement progress
Under Tranche 1, DomaCom has currently secured commitments for $735,000 (before costs), for which 11,136,363 ordinary shares will be issued at $0.066 per share on May 27, 2022.
In addition, the company is seeking to raise up to a further $4,065,000 (before costs) through the issue of up to a further 61,590,909 ordinary shares at $0.066 per share on or before June 10, 2022.
As the company has been suspended for more than 10 days, the issue of the placement shares must be accompanied by a transaction-specific prospectus for the placement shares to be freely tradeable within 12 months of their issue.
In order to meet the requirements under the transaction-specific prospectus rules, the prospectus will offer a further 1,000 ordinary shares for $0.066, which will be released separately to the ASX.