The Agency secures two month extension to find funds for the McGrath rebels acquisition

The Agency secures two month extension to find funds for the McGrath rebels acquisition
The Agency secures two month extension to find funds for the McGrath rebels acquisition

The publicly listed real estate agents, The Agency has negotiated more time to secure funding for its acquisition of the McGrath rebels outfit, the Matt Lahood-lead Top Level Real Estate.

The WA-based The Agency Group was previously due to complete a $10 million equity raising by August 11.

It told the stock market on Monday that Lahood had agreed to a further two months for it to come up with the funds.

The anticipated raising is almost double its current $6 million market capitalisation.

It first entered into an option agreement to acquire Top Level in February 2017, but has delayed the acquisition numerous times as it seeks funding.

The Agency briefly appointed an underwriter, CPS Capital Group, but terminated the agreement earlier this year.

The company told the ASX that financing for the desired acquisition was at an "advanced stage".
 
Managing director Paul Niardone said The Agency was now in "finalising discussions with the ASX regarding the most optimal transactional structure to maximise value for AU1 (The Agency) shareholders."

The acquisition of Top Level would combine east and west-coast businesses.

Top Level, which trades as The Agency under licence, is led by the former McGrath head of sales Matt Lahood alongside other former McGrath agents including Ben Collier, who have equity.

The Financial Review described The Agency financial position as "precarious" with the company having to secure a $1.1 million loan to bolster working capital.

The Agency Group denied a February report alleging it had delayed acquisitions "as it scrambles for cash."

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