ASX-listed real estate agency The Agency has raised $5.6 million from investors, including newcomers Magnolia Capital and Honan Insurance Group.
The two new shareholders inject capital through a placement, while an additional $4.5 million will be raised through a 4-for-7 Entitlement Offer to existing shareholders.
Sydney-based Magnolia Capital will invest up to $3.5 million for a significant 17.9% stake in the company. Magnolia director Mitchell Atkins will join The Agency’s board as a Non-Executive Director.
Honan Insurance Group will invest $500,000 and provide insurance technology, industry data, and corporate advisory services to The Agency.
The new funds will be allocated to new working capital, repaying existing loans, and funding acquisition initiatives.
The Agency’s half-year results to December 2018 revealed a working capital deficit of $6.6 million. The company has also entered into agreements to convert $5.8 million of debt into equity, reducing its debts by 27%.
Shareholder approval will be required to complete the exercise.
