ASX-listed DomaCom announces up to $6 million capital raise through issue of convertible notes
ASX-listed DomaCom have announced a capital raise of up to $6 million through the issuance of convertible notes. With support of several of DomaCom’s primary shareholders, this initiative will commence with an initial fully underwritten raising of $2 million (‘Tranche 1’) through the issue of 2 million convertible notes with a face value of $1.00 to wholesale investors, with a 5-year maturity date, paying an annual interest rate of 12% and a conversion price of $0.08. Furthermore, DomaCom intends to seek subscriptions for up to an additional $4 million (‘Tranche 2’) to be raised through the issue of 4 million convertible notes with a face value of $1.00 with the same terms as Tranche 1 to wholesale investors subject to shareholder approval.
Following a robust FY2023 that witnessed a 61% increase in FUM to $216 million at 30 June 2023 and a 134% increase in fee revenue to $2.45 million for the year ended 30 June 2023, DomaCom plans to employ the capital raised to establish a solid financial foundation for future growth. DomaCom aspires to accelerate its growth trajectory by augmenting FUM and diversifying the asset classes offered to truly extract value of its unique platform for its shareholders.
The DomaCom product offering is unique in that it provides the security of a fully regulated trust structure, the benefits of an industry leading technology platform and the unique authorisations and Australian Financial Services License that allow the liquidity that comes from operating of the secondary market. DomaCom empowers investors by granting access to previously inaccessible assets, typically reserved for institutional and large-scale investors, through asset fractionalisation thereby fostering diversification through smaller asset parcels.
DomaCom CEO John Elkovich commented, “We are pleased to announce the proposed issuance of Convertible Notes which will bolster the company’s financial standing and support the continued growth opportunities available for the innovative DomaCom product offerings.
“DomaCom has had a successful FY2023 and we eagerly anticipate building upon these achievements, carrying forward the momentum to fully realise the potential of the DomaCom platform.”