Capital raising by The Agency for McGrath rebels imminent announcement

Capital raising by The Agency for McGrath rebels imminent announcement
Capital raising by The Agency for McGrath rebels imminent announcement

The Agency's long awaited acquisition of the McGrath rebels Top Level Real Estate seems set to be completed mid-week.

The Western Australia based The Agency has been seeking the acquisition since February 2017, with numerous extensions being sought from the Matt Lahood-led agency.

The Agency had been seeking a $10 million capital raising to purchase Top Level.

It has yet to be revealed if they secured the intended $10 million funding for the outfit which was set up by a host of defecting McGrath agents at the start of 2017. 

The Agency have requested the ASX allow for a trading halt until the imminent announcement due Wednesday, then subject to shareholder approval.

"The trading halt is requested pending an announcement by the Company regarding the finalisation of funding agreements relating to a capital raising (a Condition Precedent under the Amended and Restated Binding Option Agreement to acquire Top Level Real Estate Pty Ltd)," the request read.

Before the 9.25am announcement, the shares were trading at 0.11c, valuing the company at $7.5 million.
 
The Agency shares fell to a record low 0.07c in June as the ASX sought an update from the company after an unusually high two million shares were traded in back to back days.

Market sources are saying the only remaining condition to the transaction is shareholder approval.

On completion, The Agency group will comprise a national real estate business having two prominent brands (The Agency and Sell Lease Property), along with 300 sales representatives across Perth, Sydney, Melbourne and the Gold Coast.

Earlier this month The Agency announced they had recorded the same annual losses as last year, despite recording significantly higher revenue.

 

 

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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Mcgrath The Agency

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