- Fractional investing platform provider DomaCom (DCL) soldiers in on its thorny acquisition deal of AustAgri, announcing a key condition of the transaction has been met
- DomaCom has been advised that AustAgri’s subsidiary Global Meat Export (GME) has completed the acquisition of Cedar Meats’ business assets and activities
- DomaCom CEO Arthur Naoumidis says the acquisition has been a stop-start affair over the last 12 months but says real progress is finally being made
- During the prolonged suspension, DomaCom’s shares have been sitting at 6.5 cents
Fractional investing platform provider DomaCom (DCL) soldiers in on its thorny acquisition deal of AustAgri, announcing a key condition of the transaction has been met.
DomaCom has been advised that AustAgri’s subsidiary Global Meat Export (GME) has completed the acquisition of Cedar Meats’ business assets and activities.
GME’s acquisition of Cedar Meats’ corporate assets and activities fulfils the first key requirement of the revenue recognition agreement with AustAgri relating to a conditional proposal to onboard AustAgri into a DomoCom sub-fund.
DomaCom has commenced its final legal and financial due diligence for the AustAgri transaction as a consequence.
The news is just the latest iteration of the protracted acquisition deal that started all the way back in September 2020.
DomaCom said on September 4, 2020, that it had signed an implementation agreement related to a proposal for a DomaCom sub-fund to purchase AustAgri, however the arrangement eventually resulted in the firm going into a trading suspension in May.
The trading halt was related to the proposed purchase, which was placed on hold following an investigation by Nine’s A Current Affairs (ACA) programme, which accused AustAgri of making misleading statements about its business. A proposition DomaCom disputes.
DomaCom CEO Arthur Naoumidis said the acquisition has been a stop-start affair since it was announced over 12 months ago but said real progress has now finally been made.
“As our AustAgri due diligence process recommences, we continue in our efforts to complete the shortfall raising, a precursor to DomaCom shares resuming trading on the ASX.
DomaCom was notified by the ASX in July that it must stay suspended until a capital raise is completed to guarantee that the firm has adequate funds to maintain operating. As a result, DCL announced it plans to raise roughly $2 million to investors in a private placement.
The AustAgri deal remains subject to a number of conditions; the completion of the due diligence, AustAgri and DomaCom shareholder approval, as well as AusAgri refinancing its transaction loan facility with a longer-term loan facility.
In more positive news, the company recently announced that its funds under management grew to $90 million driven by increased adviser syndications for National Disability Insurance Scheme transactions executed through its fractional investment platform.
During the prolonged suspension, DomaCom’s shares have been sitting at 6.5 cents.