DomaCom considers potential acquisition of Bricklet after securing loan funds and private placement

ASX-listed DomaCom Limited have announced that it has entered an agreement with property co-ownership marketplace operator Bricklet to provide a $3 million loan together with an agreement to invest $1 million into DomaCom through a private placement, completion of which is subject Bricklet being satisfied with its due diligence investigations on DomaCom, with due diligence to be completed by 2 February 2024.

The capital injection will be directed towards the full repayment of the $2,450,000 currently due to existing convertible noteholders on 1 February 2024.

In addition, Domacom is considering the potential acquisition of Bricklet and has entered a term sheet with Bricklet to carry out due diligence as part of the process of negotiating a potential acquisition by DomaCom.

Potential strategic acquisition based on shared goals

The potential combining of the two businesses would aim to improve the product offerings available to investors through fractional property investing. The shared goal of allowing investors to gain exposure to larger inaccessible asset would aim to drive the business forward. The ability to share resources, expertise, knowledge and distribution networks would be likely to bring significant benefits to DomaCom’s stakeholders and would aim to help to secure their position as the market leader in Fractional Investing.

DomaCom CEO John Elkovich commented, “We are excited by the synergistic benefits that may be realised by a combined DomaCom/Bricklet business. Both groups are passionate about making it easier for investors to genuinely diversify their asset portfolios. They both allow investors access to property investments previously only available to high-net-worth investors, thanks to the power of fractional investing platforms. Bringing the businesses together will provide the opportunity to bring to market a more diverse product offering,”

Bricklet Chairman Giuseppe Porcelli said, “Uniting our strengths, DomaCom and Bricklet embark on a transformative journey, unlocking new horizons in fractional property investing. This strategic acquisition reflects our shared commitment to empower investors with access to previously inaccessible assets.

“Together, we will not only expand product offerings but also create a synergy that enhances our collective impact. By joining forces, we bring forth a diversified product range, breaking barriers for investors and reinforcing our position as leaders in the Fractional Investing landscape.”