DomaCom Limited (ASX:DCL) Announces $1.5 Million Placement
Financial Strengthening via Placement
DomaCom Limited (ASX:DCL) has entered a conditional agreement with Lumiere Lifestyle Group Limited for a $1.5 million placement. Lumiere will subscribe for 107,142,857 fully paid ordinary shares at $0.014 per share, pending satisfaction of conditions. This transaction potentially strengthens DomaCom’s financial position and reflects confidence in its growth strategy.
Additionally, Lumiere will receive options as part of the placement, fostering further collaboration between the two entities.
Launch of New Investment Funds
DomaCom and Lumiere have announced the launch of three new funds targeting specific market needs. The Maison Rose Care Fund will finance care providers, offering fixed income returns to investors. The Lumiere Homeowner Shared Equity Fund will focus on residential properties, allowing homeowners to retain equity through DomaCom’s Bricklet platform. Lastly, the Evercare Living SDA Property Fund aims to provide high-quality housing for individuals with disabilities.
These funds reflect the partnership’s commitment to providing innovative investment solutions within diverse sectors.
Acquisition of Underperforming Assets
As part of the agreement, Lumiere will acquire assets from DomaCom’s underperforming sub-funds. Current investors will have the chance to reinvest in the Maison Rose Care Fund, receiving top-up units equivalent to certain expenses of the sub-fund. This move aims to enhance investor value beyond on-market sales.
Partnership Benefits and Executive Comments
Giuseppe Porcelli, DomaCom’s Chairman, stated, “This placement underscores the confidence Lumiere has in DomaCom’s vision and capabilities.” He highlighted the alignment with Lumiere as a reinforcement of their financial base and an unlocking of growth opportunities.
Lumiere’s CEO, Michael Elliott, noted the potential in DomaCom’s innovative property management strategies and expressed commitment to enhancing underperforming assets, stating, “The collaboration between DomaCom and Lumiere will provide opportunities to develop joint initiatives for those needing assistance with housing.”
Completion of the agreement is anticipated by 31 March 2025, subject to due diligence and standard conditions.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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