The Agency secures capital raising from Magnolia Capital and Honan Insurance
The Agency have secured $5.6 million in funding, with Sydney-based boutique investment group Magnolia Capital becoming a substantial shareholder.
Magnolia Capital now have up to an 18 percent holding in The Agency, with their director Mitchell Atkins to join The Agency board as a non-executive director.
Honan Insurance Group were another to invest. They have entered a strategic relationship with The Agency.
The $5.6 million raised comes in the form of $1.1 million in placement and $4.5 million through entitlement offers.
The Agency's current $5.8 million debt will be converted into equity, reducing the total debt position by 27%.
Some $2.2 million of the funds raised have been allocated to fund further growth and acquisition initiatives.
The funds raised will be used to strengthen the company's balance sheet, with a further $1.7 million to repay existing loans and $1.1 million allocated for working capital.
The SMH reported The Agency's Top Level entity still had an obligation to pay $12.5 million to its lenders, Macquarie Group.
The report noted Macquarie agreed to extend the deadline to repay the $12.5 million.
