Fractional property investment specialist manager DomaCom is expecting to raise $6 million from its current capital raising activities and has announced Halo Investment as the organisation at the centre of its most recent share subscriptions.
DomaCom announced Halo was the firm that subscribed to a placement of $500,000 worth of shares on 6 September, as well as revealing the company had subscribed to a further placement of shares to the value of $700,000 at $7.42 per share.
It means Halo’s investment in DomaCom now stands at $1.2 million.
In addition, it was confirmed Halo has signed a principle agreement for the acquisition of another tranche of DomaCom shares at a price of $7.42 per share to the maximum value of $1.8 million to be completed by 30 September.
Further, a fully underwritten non-renounceable rights issue at an issue price of 7 cents has also been proposed with a view to raising another $3 million. Ascot Securities will be underwriting this rights issue.
“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,” DomaCom chief executive Arthur Naoumidis said.
“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 (the parent of Halo Investment Co) as prime broker exclusively for our secondary market.”
It is intended Halo chief executive Matthew Roberts and executive George Paxton will be appointed to the DomaCom board once all of the capital raising transactions have been completed.
“We are very excited to be able to partner with this very innovative business and to be able to use our extensive investor distribution and tech capability to accelerate DomaCom’s growth and achieve a mutually beneficial outcome,” Roberts said.
“With over $2 billion in funds under advice in client portfolios uploaded onto the Halo platform and ownership of the MacroVue platform, through our many synergies, we believe that we are well-positioned to drive the B2C and B2B distribution of both DomaCom’s secondary market and property syndications.”