DomaCom, an Australian-based financial technology firm listed on the ASX under the ticker ‘DCL’, has unveiled its plans to raise up to $6m by issuing convertible notes.
This endeavour has garnered the support of several of DomaCom’s key shareholders, kickstarting with a fully underwritten raising of $2m, known as ‘Tranche 1’. This segment involves the issuance of two million convertible notes, each with a face value of $1.00 for wholesale investors.
The company specialises in providing investors with unique access to previously out-of-reach assets. Through its innovative platform, DomaCom offers the security of a fully regulated trust structure, cutting-edge technology, and specific Australian Financial Services License authorisations. This framework facilitates liquidity from secondary market operations. DomaCom’s standout feature is its ability to offer asset fractionalisation, thereby enabling investors to diversify by purchasing smaller asset parcels that were traditionally reserved for institutional stakeholders.
These newly raised funds are earmarked for the repayment of Existing Convertible Notes, ensuring the company has a robust financial foundation for future growth. DomaCom aspires to accelerate its growth trajectory by increasing its Funds Under Management (FUM) and diversifying its asset class offerings. This strategic move aims to maximise value for shareholders by harnessing the full potential of its platform.
Following a successful FY2023, which saw FUM grow by a staggering 61% to $216m as of 30 June 2023, and a 134% rise in fee revenue reaching $2.45m for the year ending 30 June 2023, DomaCom is poised for even greater achievements. The company has also outlined plans for ‘Tranche 2’, which entails raising an additional $4m by issuing four million convertible notes to wholesale investors, pending shareholder approval.
DomaCom CEO John Elkovich shared his thoughts on this new venture, “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.”
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