DomaCom’s new stakeholder provides strategic benefits
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
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.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.