DomaCom continues product development throughout September quarter driving future growth

DomaCom continues product development throughout September quarter driving future growth

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DomaCom Ltd (ASX:DCL) has continued development of key products throughout the September quarter which are expected to drive future revenue growth with a particular focus on the AustAgri transaction. The company also saw a continued growth in Funds Under Management (FUM), which rose 4.6% per cent in Q1 FY21 to A$74.7 million from A$71.4 million in Q4 FY20. Transactions to transform company outlook Chief executive officer Arthur Naoumidis said: “The September quarter has positioned the company with several very prospective transactions that could transform the outlook of the company going forward. “If successful, the AustAgri transaction will add $300 FUM and significant cash flow which would place the company in a stable cash position and in sight of being cash flow positive. “In addition, the Islamic and Affordable housing projects will then provide the opportunity for significant scaled FUM growth in the years to come.” AustAgri agreement During the quarter, DomaCom reached a transformational agreement with AustAgri, in which the DomaCom Fund will acquire the AustAgri company who is set to commit $2.6 million in annual management fees for a fixed term of 5 years. On completion of this transaction, DomaCom will receive at least $13 million in the first 5 years for which AustAgri shareholders will receive 100 million shares in recognition of the cashflow to be delivered which will reduce the need to raise further capital. In an Extraordinary General Meeting held on October 21, DomaCom shareholders approved the AustAgri transaction including the issue of the 100 million DCL shares conditional on the successful acquisition of AustAgri. DomaCom is now awaiting confirmation that AustAgri has completed the key foundation acquisitions before starting legal and financial due diligence of AustAgri. Product development continues to build During the quarter, DomaCom made progress across four products currently in development: Rental Property Accelerator, Essential Worker, Equity Mortgage, and Senior Equity Release. The company's cash position at the end of September was $2.2 million. 

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