The Agency is predicting a strong financial future ahead after raising $4.5 million as part of a share entitlement offer.
Announced in July, the offer saw each eligible shareholder entitled to apply for a further four shares based on every seven shares held. They were also provided with one free attaching listed option for every two shares subscribed for and issued.
The Agency managing director Paul Niardone said the offer was one of a number of significant milestones the group had recently achieved.
“With the $4.5 million in funds from the entitlement offer, along with the $1.1 million placement and $5.8 million debt to equity conversion and the extension to the Macquarie Bank financing facility, we now have the necessary funds to further accelerate our growth strategy on the East and West Coast,” he said.
Sydney-based boutique investment group Magnolia Capital took up a significant portion of the entitlement offer and now have a 17.9 per cent interest in the company, with Magnolia Capital Director Mitchell Atkins also appointed to The Agency Board.
The Magnolia group has a wide array of investments including fitness, property, financial services and advisory businesses.
Prior to founding Magnolia in 2013, Mr Atkins served as a senior analyst in the financial services business at Deloitte and as an investment analyst at a boutique private equity firm in Sydney.
Mr Niardone said he was delighted to welcome both Magnolia Capital as a strategic investor and Mitchell Atkins to The Agency Board.
“Mitchell is an impressive leader who brings a wealth of experience in the property sector and a strategic vision for how the company can continue to grow and further disrupt the Australian real estate market,” Mr Niardone said.
Mr Atkins noted The Agency had a bright future ahead based on positive recent financial results and the capital raised through the entitlement offer.
“The Agency are a great growth story with the combination of strong client service, a highly-credentialed team and the best in class technology and systems,” Mr Atkins said.
“The business has seen a great increase in profitability this quarter and we see a significant opportunity to expand the business and continue to increase results further in the coming months.”