The Agency seeks to raise $10m

Real estate group The Agency has entered an agreement with CPS Capital Group to underwrite a minimum $10 million capital raising.

In February, The Agency (formerly Ausnet Financial Services Limited) announced a proposed acquisition of Top Level Real Estate, with the completion of a capital raising for a minimum of $10 million in gross proceeds a condition precedent of that acquisition settlement.

The raising will be executed through the issue of fully paid ordinary shares in the company at an issue price of 2 cents per share.

The Agency believes the acquisition of Top Level will provide a highly experienced east coast real estate sales and project marketing team, as well as deliver a significant property management portfolio and extensive sales pipeline.

Perth-based stockbroking firm CPS Capital Group has committed to underwriting the capital raising and subject to successful completion of the proposed capital raising, will receive 6 per cent of the underwritten amount.

CPS Capital Group or its nominee will also receive 2 million ordinary shares in the company (on a post consolidation basis).

The Agency managing director Paul Niardone said the business was fully committed to the proposed acquisition of Top Level and was pleased to have executed an underwriting agreement with CPS Capital Group.

“CPS Capital Group has a strong track record of fundraising success and to have them support our capital raising is a significant milestone in the advancement of this transaction,” he said.

“We recently undertook a roadshow to meet with, and present to, a range of Australian small cap funds, institutions, and received overwhelmingly positive feedback.

“With the support and commitment of CPS Capital Group to our capital raising we look forward to completing the transaction within our expected timeframe.”

On Monday, The Agency announced the expansion of its east coast footprint, planning to open a new office in Melbourne in March.