The Agency Group has raised $5.6 million via a placement and rights issue, and struck a deal to convert $5.8 million of debt into equity.
The Agency Group Australia has raised $5.6 million via a placement and rights issue, and struck a deal to convert $5.8 million of debt into equity.
Under the capital raising, The Agency secured $1.1 million through a placement, and $4.5 million via a four-for-seven rights issue.
Funds raised will be used to provide a much-needed boost to its balance sheet, with a portion allocation to repay $1.7 million of existing loans.
Shares were issued at 6.5 cents each, a 14.5 per cent discount to its previous closing price.
Sydney-based Magnolia Capital director will own an 18 per cent stake in The Agency after the placement.
Magnolia director Mitchell Atkins will join the real estate agency’s board as a non-executive director.
Patersons Securities and Aura Capital were the joint lead managers of the placement and rights issue.
As part of the capital raise, The Agency entered into agreements to convert $5.8 million of its debt into shares on the same terms has the rights issue.
The debt-to-equity conversion will reduce The Agency’s debt to $13.6 million.