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The Agency appears to be struggling to raise the required funds to acquire Top Level Real Estate and has been granted a two-month extension to secure the funding.
The announcement came on the same day as The Agency Group was meant to have completed its minimum $10 million capital raising.
The WA-based group now has until 11 October to come up with the money to acquire East Coast operator Top Level Real Estate, which is run by ex-McGrath agent Matt Lahood.
Mr Lahood’s Top Level Real Estate trades as The Agency under a licence agreement and entered into an option agreement with The Agency Group in February 2017.
Since the initial option agreement, the acquisition has been delayed multiple times, further being hampered by the termination of their underwriter CPS Capital Group earlier this year.
The group has announced no replacement underwriter and their shares have fallen to 1 cent as of trading on Tuesday.
Managing director Paul Niardone told the Australian Financial Review that the company didn’t want to be pushed into a time frame.
“We’re totally committed to getting this deal done. There’s quite a bit we need to do. It’s not just about the raising but about merging two organisations and how that will take place,” Mr Niardone said.
REB reached out to The Agency to ask them what they had planned should they not raise the required capital, but they did not respond to our request.
The group also borrowed $1.1 million in short-term funding as working capital, which was to tide the group over until the Top Level deal was sealed.
The Agency Group reported a strong June quarter and in an ASX announcement said that they had raised a total of $4.1 million in gross sales commissions over the quarter.
The group had also acquired real estate firms Inglewood and Sell Lease Property, with the former adding 80 property managers to the Agency and the later providing $1.8 million in gross sales commissions in the quarter.
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