The Agency enter trading halt ahead of $5 million capital raising

The ASX-listed real estate firm The Agency have entered a trading halt on Thursday morning, pending an announcement which expects to see them ask for further investment.

The group say that to continue as a going concern, they are principally dependent on a raise of $5 million from the issue of convertible notes, which will be subject to shareholder approval.

They're also principally dependent on the execution of an amended deed with their main financier Macquarie Bank. 

The Agency still have a $12 million debt registered to Macquarie, which has been continually extended from its initial March deadline.

It had been due September 30, but that has now been pushed six weeks to November 14. The $5 million raise will be used to pay down its Macquarie debt.

They say they will need the continued support of creditors.

And whose to suggest a large portion of their capital raise won't be coming from the west of the country, where the last two injections of cash have come from.

It was back in May that the prominent Perth horse owner and breeder Bob Peters invested $1 million in the company through Peters Investments.

Shares will be halted until Monday. 

It comes after The Agency posted further losses in FY2020, but The Agency advised the losses were mainly due to depreciation and amortisation and impairment of goodwill.

The total losses grew to $10.36 million, up on its $9.26 million loss in 2019.