The Agency secures capital raising from Magnolia Capital and Honan Insurance

The Agency secures capital raising from Magnolia Capital and Honan Insurance
The Agency secures capital raising from Magnolia Capital and Honan Insurance

The Agency have secured $5.6 million in funding, with Sydney-based boutique investment group Magnolia Capital becoming a substantial shareholder.

Magnolia Capital now have up to an 18 percent holding in The Agency, with their director Mitchell Atkins to join The Agency board as a non-executive director.

Honan Insurance Group were another to invest. They have entered a strategic relationship with The Agency.

The $5.6 million raised comes in the form of $1.1 million in placement and $4.5 million through entitlement offers.

The Agency's current $5.8 million debt will be converted into equity, reducing the total debt position by 27%.

Some $2.2 million of the funds raised have been allocated to fund further growth and acquisition initiatives.

The funds raised will be used to strengthen the company's balance sheet, with a further $1.7 million to repay existing loans and $1.1 million allocated for working capital.

The SMH reported The Agency's Top Level entity still had an obligation to pay $12.5 million to its lenders, Macquarie Group.

The report noted Macquarie agreed to extend the deadline to repay the $12.5 million.

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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The Agency Capital Raising

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