First reported in the Australian Financial Review
- ASX Listed BuyMyPlace sold for $100,000 with over $5m in debt forgiven
- In May, auditors gave warnings about the company’s ability to continue trading
- Nearly $2.4m in salaries paid + $1m in share payments, including directors while earning $2.9m in revenue
- Accountancy firm KordaMentha to take control and try to “trade out of trouble”
Another ASX listed real estate sales company in trouble.
The rising cost of client acquisition through digital channels including Google AdWords has forced DIY sales agency buymyplace.com.au to sell the company for only $100,000 and for creditors to forgive over $5m worth of debt after unsuccessfully chasing a $10m raise.
The company, headed by Chief executive Colin Keating, and real estate agent Cameron Fisher, generated revenues of over $2.9m but losses of over $5.4m while auditors issued warnings about the company’s ability to continue trading back in May.
The company’s publicly available financial records show salaries of nearly $2.4m paid to staff and directors as well as $1m in share-based payments, despite only generating $2.9m in revenue. The company also recorded expenses of a further $1.46m in advertising and marketing.
The offer from KordaMentha, an advisory and investment firm, is due to be voted on at the company’s upcoming AGM.
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