- Capital raise announced in mid-March
- Raise was to fund company restructure
- Alternatives now being considered
Earlier this year, then Velocity Property Group (ASX: VP7), now Dealt (ASX: DET), announced that it had “maintained robust sales activity… with high levels of demand experienced for owner occupied apartments and townhouses located in premium south-east Queensland locations.”
Revenues were $30.42 million, but VP7 posted a statutory loss of $3.36 million.
Rebrand, raise, and restructure
On 10 March this year, Velocity renamed the company Dealt, with the new ticker DET.
A week later, Dealt and responsible entity, 360 Capital Group (ASX: TGP), announced that it would commence capital raising to fund the group restructuring efforts.
The raise sought a $28.4 million minimum at 50 cents per share, the maximum set at $93.4 million.
Capital raise update
This morning, Dealt announced the company did not reach the minimum subscription.
Dealt said it will “withdraw the Prospectus Product Disclosure Statement previously issued and will arrange for all funds received to date to be returned,” and the board is now “reviewing several alternatives”, further announcements expected in the coming weeks.
The broader market
Capital and equity raising for a number of companies in the real estate sector over the past few months has been quite successful, including Primewest (ASX: PWG), Centuria (ASX: CNI), and Qualitas (ASX: QRI). HomeCo (ASX: HDN) has also embarked on raising efforts, so too has Ultima United (ASX: UUL).
The technology side of property has also been particularly strong, buoyed by Proptech Group (ASX: PTG) following two acquisitions.
Whilst the company considers alternatives, the signs are promising.