- Dealt Limited has signed a share sale agreement to acquire all the shares of Digital Software Solutions, trading as dealt
- The company’s directors have suggested to shareholders that the company proceed with the purchase of dealt
- It is proposed that the company be delisted and withdrawn from the ASX, as disclosed to the market on Wednesday
- The directors say the purchase of dealt is in the best interests of shareholders as they felt current level of activities is not acceptable for continued listing
- Dealt shares are trading in the grey at 55 cents at 2:25pm AEST
Dealt Limited (DET) has signed a share sale agreement to acquire all the shares of Digital Software Solutions (trading as dealt), an online marketplace/brokerage for commercial real estate loans.
Dealt, formerly Velocity Property Group (VP7), announced a complete company reorganisation last year, just before recording a $3.36 million loss in the first half of the fiscal year 2021.
The company announced that it would change its name and sell its residential property development business in order to pursue a new commercial real estate investment strategy.
In light of the change, it entered into an agreement with 360 Capital to restructure the company into a trust known as Dealt Group, with the sale of AMF Finance and Digital Software Solutions to it for $3 million and $4 million respectively.
The company’s directors suggest to shareholders that the company proceed exclusively with the purchase of dealt, based on the high interest in the platform on its own and additional study and due diligence.
This would imply that the company would be repurposed entirely as a commercial real estate lending marketplace and broker.
The proposal will not need the raising of additional capital because the consideration for the acquisition of the shares in the transaction will be financed in part from existing capital resources and in part by the issuance of company shares.
It is proposed that the company be delisted and withdrawn from the ASX, as disclosed to the market on Wednesday.
While the directors feel that the purchase of dealt is in the best interests of shareholders, they do not believe that the company’s current level of activities is acceptable for continued listing.
The directors said that ongoing expansion and investment in the dealt business may best be undertaken in a delisted environment, which will provide the company more flexibility in achieving future liquidity situations.
It follows a tumultuous few months for the company. In May, dealt withdrew a capital raising after the minimum subscription of $28.4 million was not met, returning funds received.
Earlier this month Peter Lewis tendered his resignation as independent chair and director of Dealt, with the board electing Tony Pitt as the new chair of the board.
Dealt shares were trading in the grey at 55 cents at 2:25pm AEST.