DomaCom’s new stakeholder provides strategic benefits

By Trevor Hoey. Published at Sep 17, 2019, in Technology

On Monday, HALO Technologies Pty Ltd emerged as a substantial shareholder of DomaCom Ltd (ASX:DCL), which through its unique investment platform provides both self-managed super fund and long-term investors with an opportunity to make fractional investments in a wide range of asset classes.

HALO subscribed to a placement of $500,000 on 6 September, 2019 and the group has participated in a further placement of $700,000 at 7.42 cents per share, taking its investment to $1.2 million, representing a stake of just over 9%.

The total amount to be raised by DomaCom during this recapitalisation process is expected to be approximately $6 million.

These funds will be used to generate continued growth including investment in the company’s platform, growing sales in the accumulation and retirement markets via its innovative products and general working capital requirements.

There are certainly numerous macro drivers that should work in DomCom’s favour, and some of these are outlined in the following graphic.

Collaborative benefits from HALO relationship

While the injection of funds from HALO is important for DomaCom, there are also significant strategic advantages in establishing a relationship with the group.

DomaCom chief executive, Arthur Naoumidis highlighted some of these benefits in saying, “In addition to helping address our balance sheet, DomaCom has also secured a well-known financial services B2C (business to consumer) channel for its fractional property product using the DomaCom Platform and this includes appointing HALO Technologies as Prime Broker exclusively for our secondary market.”

HALO has over $2 billion in Funds Under Advice in client portfolios uploaded on to the HALO platform, as well as ownership of the MacroVue platform.

Taking into account the synergies that can be achieved through collaboration, HALO believes there is the potential to drive the B2C and B2B (business to business) distribution of both DomaCom’s secondary market and property syndications.

HALO will also play a significant role in shaping the strategy and direction of DomaCom with the proposed appointment of the group’s chief executive Matthew Roberts, as well as George Paxton as non-executive directors.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X