Openn secures capital injection

Openn Negotiation has secured Axiom Properties, controlled by property identity Peter Laurance, to recapitalise the company, allowing the Claremont-based proptech to resume trading.

Axiom Properties, headquartered in Adelaide but controlled by Perth investors, announced the deal to the ASX this morning, ending a nine-day trading halt at Openn Negotiation.

Axiom has agreed to acquire a 15 per cent stake in Openn, representing a capital injection of $166,461.

In addition, Axiom has agreed to underwrite a $3.2 million rights issue, at 4 cents a share, using existing company cash reserves and receivables.

The deal follows speculation around job cuts at Openn, with members of its marketing team made redundant.

Axiom stated that it will “assist with a strategic review of Openn’s operations and expenditure” that includes board and management structure and nomination of directors agreed by both parties.

“Axiom notes that the structure may change, and the company therefore cautions investors not to place undue reliance on the same,” Axiom’s statement read.

The company added that the deal would allow it to leverage its experience and expertise in the property technology ecosystem “to benefit and enhance the Openn technology platform”.

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.

Peter Laurance, a consultant to the board of Axiom, has a 36 per cent stake in the company.

His private company Pivot Group developed Perth’s Enex100, owned and expanded Sea World on the Gold Coast and develops shopping centres and office buildings in Perth and Adelaide.

Axiom Properties was formerly headquartered in Perth, and Peter Laurance’s relatives Ian Laurance and Ben Laurance are chairman and managing director respectively. 

The deal with Axiom is set to be finalised no later than June 14.

Openn’s shares were at 3 cents at the time of writing, while Axiom Properties were at 4.5 cents.