For shareholders of fractional investment company DomaCom (ASX: DCL), it’s been a difficult FY22 which has thankfully come to an end given the Company’s 10-day voluntary suspension ultimately turned in a year-long ordeal but with a new financial year upon us, the Company is hopeful of finally re-listing alongside the release of their FY23 strategic plan.
With DCL shares last trading on 5 May 2021, DomaCom initially flagged just a short trading halt which was ultimately followed by a resignation of their CEO and Chairman, a few embarrassing ASX response letters and countless paperwork tied to capital raise attempts where funds were needed to be raised in order for the Company to be re-admitted to trading on the ASX.
Raising plenty of funds over that time to meet their financial obligations, DomaCom announced raises targeting $2m via Placement in July 2021, a $4m via Entitlement Offer in July 2021 and finally, $4.8m via Placement in May 2022.
In between all of that, DomaCom extended a $2.95m convertible note term date to February 2023 and settled an $8.5m legal claim by accepting $2.5m before the matter went through Supreme Court proceedings.
It’s fair to say that FY22 has been a nightmare if you hold any DCL shares, with shares suspended from trading on the ASX, but that hasn’t stopped Domacom’s actual day-to-day business where their fractional investment portfolios add up to $134 million in Funds Under Management (FUM) as of 30 June 2022.
With a new leadership team to take DCL forward, the Company appointed Former Liberal Party Leader and experienced economist Dr John Hewson as non-executive Chairman in April 2022 and financial services veteran John Elkovich as CEO at the same time.
Under the new leadership, the Company has raised the required capital to meet their regulatory obligations, and have their sights set on finally having their ASX suspension lifted on DCL shares.
“DomaCom has taken a number of important steps towards its goal of relisting on the ASX over the past few months,” said DomaCom CEO, John Elkovich.
“One of these was our well-received private placement to sophisticated and professional investors, which closed oversubscribed. Another was the ability of our recently revamped senior leadership team to continue momentum and set in motion a comprehensive 2023 growth strategy. I look forward to detailing this strategy to investors shortly.”
With an investment portfolio that offers customers with opportunities to invest fractional amounts into large property developments, DomaCom added 8 new sub-funds during the June 2022 quarter. These included NDIS-related property assets which are marketed as multi-residential apartment development-specific House and Land packages. These sub-funds continued a strategic market DomaCom has targeted previously where the Disability Housing segment offers higher yield returns courtesy of Government contributions through the NDIS.
From the $134 million FUM at the end of June 2022, DomaCom generated $311k in fee revenue for the June quarter.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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