Company Background & KCQ’s
The company I have been assigned is DomaCom Australia Limited. DomaCom Australia Limited is an investment platform allowing investors to invest in residential, rural, or commercial property within Australia. DomaCom was founded by Arthur Naoumidis, who also founded ASX-listed company Praemium Limited, which is a company that also specialises in investing, by providing accounts technology, portfolio administration and financial planning.
The DomaCom Fund, is an ASIC registered managed investment fund, that allows investors to view and select which properties they would like to invest in. Investors can additionally use the crowdfunding campaign that allows them to commit towards eventual purchases of property, with other like-minded investors, resulting in DomaCom purchasing the property once complete and then placing the property in a sub-fund. DomaCom then issues the investors the units in proportion to the amounts they invested.
From reading DomaCom’s 2021 Financial Report, I learned through the Chariman’s Report and CEO’s report, that DomaCom had a very volatile financial year. DomaCom was suspended from the ASX for several months during the financial year. From further investigation into this with a google search, I found an ASX release stating the reasons why DomaCom was suspended. DomaCom was suspended from the ASX due to an inquiry into a proposed transaction with a company called AustAgri Group and its acquisition of Cedar Meats, following an aired segment on A Current Affair and the negative social media attention received afterwards. Cedar Meats was the subject of a very public COVID-19 outbreak the previous year that resulted in a WorkSafe investigation, resulting in creating uncertainty for the business, which then created financing difficulties for AustAgri Group surrounding its acquisition of Cedar Meats. Naturally, this created a lengthy acquisition of Cedar Meats, with the acquisition finally taking place mid-October 2021, with the initial proposed date of acquisition being by Q4 2020.
Following the inquiry, the ASX would also not allow the suspension to be lifted on DomaCom until DomaCom had addressed their cash position by raising further capital to ensure that DomaCom has enough cash to continue operations and comply with Listing Rule 12.2. It appears DomaCom is still suspended with the ASX but has undertaken private placement to sophisticated and wholesaler investors to raise cash, which is subject to a Cleansing Prospectus because DomaCom has been suspended for more than 5 days. I have never heard of this term and wonder what this means for the company I have been assigned? I wonder how long DomaCom is to remain suspended from the ASX and what impact that will have this financial year.
It is quite interesting having a company this term that specialises in investment properties, and I am very keen to start dissecting the financial statements to see how this has impacted their results for FY2021. I also wonder how DomaCom are going to be able to attract investors and clients following the negative attention received and the suspension with the ASX, with clients already suspending transactions with the DomaCom fund.
Below are some interesting articles and ASX releases surrounding my company:
