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DomaCom (ASX:DCL) - CEO, Arthur Naoumidis
CEO, Arthur Naoumidis
Source: DomaCom
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  • DomaCom (DCL) has been in a voluntarily suspension since May 12, but it now sees the light at the end of the tunnel
  • The suspension was in relation to a transaction involving the acquisition of AustAgri
  • DCL is required to remain suspended until the completion of a capital raising to ensure that the company has sufficient cash to continue its operations
  • The company has now announced that it will generate up to $1,998,503 before fees with shares issued at a price of $0.06551 apiece
  • Shares in DomaCom Limited are sitting at 6.5 cents amid the protracted suspension

Fractional investment company DomaCom (DCL) has been in a voluntarily suspension since May 12, but it now sees the light at the end of the tunnel.

The suspension was in relation to a transaction involving the acquisition of AustAgri after an investigation from Nine’s A Current Affairs (ACA) program accused AustAgri of making misleading statements about the existence of its business.

The program also cited former major shareholder and convicted fraudster Phillip Barros as a red flag.

ACA claimed Mr Barros had been made bankrupt twice and banned from company directorships four times by ASIC.

Domacom CEO Arthur Naoumidis told ACA at the time that Mr Barros had not been involved in the deal.

In responding to an ASX query in June, DomaCom did not list Mr Barros as either a director or major shareholder of AustAgri.

In September last year, DCL announced the proposed acquisition and said it neared completing the deal in April before entering a trading halt on May 7.

In the September announcement, DomcaCom said AustAgri was a company “with operations spanning dairy, fresh milk powder and infant formula, as well as the export of livestock and chilled beef and lamb”.

DomaCom would later tell ASX it acknowledged the statement was “partially inaccurate” as AustAgri has no such assets, with the company claiming that the intention was to refer to “a state of affairs that would exist if the acquisition” were completed.

In its ASX response, DomaCom said a $7 million deposit and further working capital payments had been made on a contract to acquire Cedar Meats by an AustAgri subsidiary.

Three years ago AustAgri said it made a deal to supply baby formula to China for five years with Jateenergy, a deal that would later collapse.

DomaCom has been informed by the ASX that it is required to remain suspended until the completion of a capital raising to ensure that the company has sufficient cash to continue its operations.

The company has now announced that it will issue up to 30,506,852 ordinary shares at a price of $0.06551 per share in a private placement to investors in order to generate up to $1,998,503 before fees.

As trading in the company has been stopped for more than five days, the placement will be subject to a cleansing prospectus.

The intended issuance date is July 30, 2021, which will occur once ASIC receives a prospectus. The whole 10 per cent capacity allowed under ASX Listing Rule 7.1A will be used for the capital raising.

“We thank everyone for their patience during the period of suspension and we look forward to resuming our normal business operations to deliver on some of our exciting innovations,” DomaCom CEO Arthur Naoumidis said.

Shares in DomaCom Limited are sitting at 6.5 cents amid the protracted suspension.

DCL by the numbers
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