On December 10, 2018, DomaCom Limited (ASX: DCL) came forward and made an announcement which covers information about the capital raising which the company has managed to wrap up. As per the press release, the company has got $2.95 million capital through the issue of convertible security to Thundering Herd. It happens to be an institutional investor who is based out in Melbourne. The term of convertible security has been fixed for two years, and it would be extending coupon rate of 15% (annual) which would be paid out quarterly involving conversion price amounting to 15 cents per note. The top management of DomaCom reflected favorable views in regard to the funding which the company has achieved.
With the help of the fundraising, the company has managed to execute an essential component with respect to its recapitalization strategy. The management of the company also stated that it could address two of the primary problems which are being encountered by the Australians like affording a house and financing the retirement lifestyles. The company, in a separate press release, stated that proceeds which it would get once convertible notes get issued would be deployed towards the working capital requirements.
Recently, DomaCom’s net cash which got used towards the operating activities amounted to $0.32 million in the September 2018 quarter. During the same period, the company saw $0.036 million with respect to receipts from the customers. However, the company had also incurred $0.44 million towards the staff costs. In addition, the company had also incurred $0.36 million towards the administration and corporate costs. DomaCom’s net cash which got used towards the investing activities in the September 2018 quarter amounting to $0.17 million.
However, the company’s net cash from the financing activities amounted to $0.179 million during the September 2018 quarter. With respect to the financing activities, the company witnessed $0.61 million towards the proceeds in regard to the shares’ issuances. Earlier, the management of the company had described 2017-18 as “challenging year.” The company had maintained its focus towards reducing the operating costs. The company had even opted for the reduction of the staff and even the fees paid to the directors of the company had also been reduced in the above-mentioned time frame. In the annual report for 2018, the management of the company also stated that, in FY 2019, the effect with respect to the reduction of the costs would be visible.
Let us now have a quick look at how the stock has performed today and in the past few months. At the time of writing, the stock price of DomaCom has been witnessing the downtrend and is presently trading at A$0.064 per share which implies the fall of A$0.001 per share. The market capitalization of DomaCom Limited stood at circa $8.55 million, and the stock price of the company is trading towards the lower range. In the past three months and one month, the stock has delivered the return of -5.80% and -18.75%, respectively.