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With the ASX confirming The Agency’s financial standing, the recent suspension on the real estate group’s securities has now been lifted, meaning trading is now allowed to resume.
It comes after receipt and review of a formal submission by The Agency to the ASX, which considered that the group had met all requirements pursuant to Listing Rule 12.2.
That rule, which considers “financial condition”, reads: “An entity’s financial condition (including operating results) must, in ASX’s opinion, be adequate to warrant the continued quotation of its securities and its continued listing.”
The news was announced in a statement by the group to the ASX, in which The Agency Group reiterated its half-year 2021 financial position and outlined its finalisation of a funding package.
That funding package included the $5 million in convertible notes being issued to Peters Investments as well as an extended $5 million Macquarie Bank Limited primary secured debt facility.
With respect to the Macquarie Bank Limited loan agreement, The Agency has now advised the key terms of its new loan agreement — as amended in January 2021.
The $5 million loan has a term of two years, at an interest rate of 8.55 per cent.
According to The Agency, it has covenanted three conditions to the bank which comprise loan-to-value maintenance, monthly reporting and the tendering of compliance certificates.
The default provision contained in the new loan provision would see a default occur where the number of sales agents falls below 59.
The Agency outlined it “is comfortably meeting” the covenants with its approximate 300 agents and its LVR obligations.
The latest comes after the ending of “purported administration” against The Agency board after a hearing in the Federal Court on 1 February 2021, as well as the declaration of unacceptable circumstances provided by the Australian Government Takeovers Panel, as previously reported by REB.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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