Openn mulls its future

Claremont proptech Openn Negotiation remains in a trading halt as rumours circulate about job cuts at the ASX-listed company.

Openn Negotiation, or Openn Group, entered a trading halt yesterday, prompting industry speculation that the company was preparing to announce a recapitalisation.

Business News understands that several staff at the company have been laid off, while others have been told to look for other jobs.

In its most recent quarterly update, Openn Group flagged that it would pursue fundraising options “to address working capital requirements”, as well as signaling a plan to reduce costs.  

“Openn is in active negotiations regarding potential funding,” the company stated on the ASX in late March.

“However, like many other listed companies, the current state of equity capital markets presents challenges in securing further equity funding.”

Openn Negotiation, which runs software that facilitates real-time negotiation about property transactions, expanded to North America late last year with a 12-month deal with Boston real estate group RE/MAX.

It listed on the stock exchange in 2021, following its launch in 2016.

In its March quarter update, the group noted that the board was considering a range of options to provide additional working capital to the company.

“These include potential corporate, joint venture and asset sale transactions, or implementation of some other structure for either North American and Australian businesses, or both in order to provide funding for these businesses," the statement read.

Openn added that the board “could not give any guarantee” that a funding option would be secured, and that failure to secure appropriate funding “may delay or impede operations and business growth, and ultimately Openn’s ability to continue operating as a going concern”.

Openn managing director Peter Gibbons said at the time that Openn continued its operational and business strategy throughout the third quarter of FY23, particularly in North America.

But, he said “the ability to continue to build the business will be contingent on raising additional funding”.

The company’s shares were at 3 cents as they entered the trading halt, down from 6 cents last month.

An ASX statement yesterday reported that Openn’s securities would remain in a trading halt until either Wednesday May 24 or when it released a statement to the market.