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Image: Canva, Openn Negotiation.
  • Canadian collaboration is with The Canadian Real Estate Association
  • Pilot includes integration with REALTOR.ca
  • Subscription agreement is with US MLS Triangle, for 1 million unquoted options

Openn Negotiation (ASX: OPN) has made two major announcements this week, totalling 15 million unquoted options across the North American continent.

Most of those come from Canada, where OPN will be running a pilot with local real estate, the remaining one million will come from the United States via Triangle, an American multiple listing service.

Canadian Pilot

Openn Negotiation, through its wholly-owned subsidiary Openn North America, has announced a pilot agreement with The Canadian Real Estate Association (CREA).

The pilot will see OPN’s platform trialled with CREA and its members, preparing for the launch of the platform in Canada.

CREA has entered into a subscription agreement with OPN for 14 million unquoted options.

The pilot seeks to integrate the Openn Offers module and wider platform with CREA’s property listing platform, REALTOR.ca, Canada’s most prominent online property listings platform, with over 1.9 billion property page views in 2021.

“CREA is a tier 1 organisation and has proven to be a fantastic partner since our collaboration began in late 2021. Alignment between us is strong, as demonstrated by CREA’s investment in allocating resources to this pilot, deep integration and subscription for options. This partnership delivers tangible value to CREA members and profoundly de-risks our entry into the Canadian market,” said Openn Managing Director Peter Gibbons.

The subscription agreement details are as follows:

CREA will subscribe for 4,000,000 of the first tranche of subscription options, each of which will expire 24 months from the date of issue,and will have an exercise price of:

  • A$0.35, if exercised within nine months of issue;
  • A$0.50, if exercised after nine months, but within 18 months, of issue; and
  • A$0.65, if exercised after 18 months, but within 24 months, of issue.

50% of the shares (2,000,000) issued on exercise of the first tranche of subscription options will be subject to 3 years voluntary escrow during which the holder is restricted from disposing of or encumbering the shares.

CREA will subscribe for 10,000,000 of the second tranche of subscription options, each of which will expire 24 months from the date of issue, and will have an exercise price equal to the higher of:

  • A$0.35; and
  • a 30% discount to the 10-day VWAP immediately prior to exercise.

US MLS agreement

A subscription agreement has been entered into with American multiple listing service (MLS) company Triangle MLS Inc.

Triangle will subscribe to 1 million unquoted Openn options, for an aggregate exercise price of between A$350,000 and A$650,000, depending on the time of exercise.

In the US, MLS organisations store and publish property listing data for realtor members. Triangle is the largest MLS in the North Carolina property market, representing some 16,000 registered real estate professional subscribers, with sold property volume of 47,000 in 2021.

There is also work underway between Openn and Triangle, considering a pilot programme for the Openn platform in North Carolina.

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