KordaMentha to take reins at DIY property website buyMyplace
The buyMyplace chief executive Colin Keating has tendered his resignation, a year into the listed prop tech company's desired transformation.
He will remain in the role until a replacement is appointed, officially leaving BMP on 3 March 2019.
Colin’s resignation comes at a time of restructure for the company with BMP executing a binding term sheet with KordaMentha Custodians, which will acquire BMP in consideration for the payment of $100,000 and forgiveness of a $5 million debt owing to KMC under the loan agreement between the parties.
Subject to the backing of BMP shareholders at a December 21 meeting, KordaMentha will acquire the majority of the cash-strapped ASX-listed digital agency.
KM Custodians had provided lifeline funding to BMP since April, but following an unsuccessful $10 million capital raising, BMP faced defaulting on its debt obligations.
BMP, a pioneer in the DIY space, helps homeowners sell their homes for as little as $695 without an agent. Since 2009, it has helped more than 4500 homeowners sell their homes.
On its early 2016 float, it advised over 2,900 Australian homes had been sold since its launch.
It then attracted an average 30,000 unique website visits per month, which rose to recent levels at just 40,000 unique visitors per month..
It has been hit by the high cost of Google advertising, with its losses at $5.4 million in the 2018 financial year.
Established in 2007 and listed in March 2016, it promoted itself as Australia’s leading DIY property sales platform.
It told shareholders the growth in listings and revenue of 19% p.a. and 46% p.a., respectively, had occurred since its listing.
Hoping the market was ripe for disruption, the original BMP thesis was to seek out DIY sales which they anticipated could see 100,000 potential listings.
It hoped to emulate Canada's 23 percent DIY occurrence, but the company noted earlier this year only three percent of listings are DIY in the Australian market, "an exceptionally low number compared to international markets."
Its auditor issued a warning about its ability continue as a going concern in May.
KordaMentha partner Mark Korda will take control of buyMyplace.com.au.
The company has been in a ASX trading halt since September.
The transaction includes $500,000 from KMC to enable the company to fund its operations until 21 December 2018.
KMC have advised the business will continue to "operate as normal.'
KMC has stated its intention to appropriately capitalise the company and grow the business in a private environment.
BMP had announced its intention to acquire Pleased.Property for $2 million in August 2018, but the acquisition of Pleased.Property will not progress.