DomaCom’s new stakeholder provides strategic benefits
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.