DomaCom Australia Ltd (ASX:DCL) has raised $5 million in an oversubscribed placement that is expected to open the way for the company to resume trading on the ASX.
The company received subscriptions totalling $5,024,203 for the private placement. It issued 11,136,363 ordinary shares at $0.066 per share raising $735,000 (before costs) and followed this with a further 61,957,619 ordinary shares also at $0.066 per share which raised $4,089,203 (before costs).
DCL has also received an application to raise a further $200,000 from the issue of 3,030,303 ordinary shares at $0.066 to a director of the company subject to shareholder approval.
Use of funds
Along with DCL potentially resuming trading, the funds will go towards:
- strengthening DCL’s balance sheet;
- fund working capital requirements and the costs of the offer and the private placement; and
- provide additional funding to further develop DomaCom’s existing product offerings, enhance the technology platform and new product initiatives.
Continued growth
While suspended and in capital raising mode, DomaCom continued to grow the business, with Funds Under Management (FUM) showing impressive growth, recently reaching $134 million.
DomaCom CEO John Elkovich said: “The completion of the placement has resulted in a total of $5 million being raised over the past two months in support of our business. It takes us ever closer to our targeted relisting on the ASX.
"While locking in these new capital resources has been important to DomaCom’s long-term future, we have also been heavily focused on growing the business. The DomaCom team has continued to successfully grow our FUM over recent months with an exciting pipeline of prospective transactions evidencing the pivot of the business to sales.”
About DomaCom
DomaCom owns and operates a fractional investment platform that provides solutions for SMSFs, retirees and new home buyers.
Using the DomaCom platform, investors can make fractional investments in a range of asset classes including property-related investments, mortgage-backed securities, renewables, affordable housing, disability accommodation and debt securities via a unique trust structure tailored to them.
Retirees can sell a fraction of their house to investors, possible family members, to help them improve their retirement income.
DomaCom runs a crowdfunding campaign process in which investors can commit as much as they want towards the purchase of assets together with other like-minded investors.
When a campaign is complete, DomaCom purchases the asset, places it in a sub-fund, and issues the investors with units in proportion to the amount they invested.
DomaCom’s proprietary platform allows Australians to invest in almost any asset class, empowering them to create diversified portfolios with comparatively lower minimum investments and competitive cost structures.