They appear to offer crowdfunding based investment and have listed attractive returns on quite a few compaigns.
https://domacom.com.au/public-crowdfunding-campaigns/
Has anyone invested with this company before? What do you think of them?
Has anyone invested with DomaCom?
Ash-Say on 16/06/2018 - 15:27
Last edited 16/06/2018 - 15:28
Last edited 16/06/2018 - 15:28
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Add: Check this out
https://domacom.com.au/the-domacom-fund/the-domacom-fund-uni…I am guessing it reads as all their actual funded and current investments (by numeric order, so numbers taken but not showing could be investments that fell through - did get enough funding etc). From the valuation prices over time blast 2-3yrs, the returns have been pretty lousy, more recent ones register losses. (I acknowledge these valuation prices may be triggered on transfer of shares, so if there has been no transfers there are no registered price change)
Here are my new thoughts. Assets are not acquired at market/discounted value, and infact may be priced to perfection on future potential, whilst the individual doesn't get to negotiate the deal.
If you are looking at the products on offer with Domacon, my advice would be to undertake your own due diligence.
On September 7 last year, Domacom trumpeted a $350 million dollar deal with a company called Austagri Limited. The share price went up because as Domacom (DCL) said at the time,
“AustAgri is an unlisted public company with operations spanning dairy, fresh milk, milk powder and infant formula, as well as the export of livestock and chilled beef and lamb"
Actually, they don't, they have none of that at all, in fact, the company runs from an accountants office in Toorak and is promoted by a convicted fraudster and white-collar crim.
“DomaCom has been informed that AustAgri has now completed the exchange of purchase contracts of the underlying businesses with the settlement now being organised.”
NO, Austagri have never had a contract to purchase anything, a 3rd party company signed 3 years ago for an asset, however, they have been unable to come up with a deposit let alone a settlement. So as you can imagine there have been quite a few announcements saying the deal has been delayed.
“DomaCom Ltd (ASX:DCL) shares are trading about 7% higher intra-day after providing an update on the implementation agreement for a DomaCom sub-fund to acquire AustAgri Group Ltd (AAGL).”
And look at that, a share price spike on the back of a blatant lie.
There are over 800 published lies about this deal, with my personal favourite being a milk processing facility that is going to produce a billion litres a year (around 1/8 of Australias supply).
So if you want to be con stick with Domacon!
https://9now.nine.com.au/a-current-affair/asic-examining-sto…
The QCs, the conman and the spectacular stock market deal
By Dan Nolan|A day agoCorporate regulator ASIC is examining details of a spectacular deal announced to the stock market involving possible ties to a convicted fraudster and two well-known Melbourne barristers.
Austagri portrays itself as one of the biggest agricultural ventures in Australia even though its actual assets are virtually zero and it is now at the centre of a complicated acquisition deal involving listed company Domacom.
Austagri's website is littered with false and misleading claims including that it owns a milk powder factory producing "20,000 metric tonnes per annum" and has offices in multiple countries.
Austagri's website said it owns a milk powder factory producing "20,000 metric tonnes per annum". (Supplied)Previous claims, since removed from the website, included that it produced "1 billion litres of milk per year" which is around one eighth of Australia's entire milk production.
Domacom announced its acquisition of Austagri Group Limited to the ASX last September stating the company has "operations spanning dairy, fresh milk, milk powder and infant formula, as well as the export of livestock and chilled beef and lamb".
Domacom CEO Arthur Naoumidis has since confirmed that claim is not true, telling A Current Affair in a recorded interview that Austagri is a "holding company" which currently has no assets other than a contract to buy Melbourne abattoir Cedar Meats, the site of a COVID-19 outbreak last year.
Austagri's website. (Supplied)That purchase has been plagued by delays since a contract was signed in 2018 and in recent months, Cedar Meats' owners are understood to have become nervous after a cheque bounced for part of the deposit.
"I'm aware that a cheque bounced but it wasn't from Austagri and it was, from what I've been told, it bounced for procedural, a timing issue and it was dealt with," Mr Naoumidis said.
Cedar Meats declined to be interviewed and Austagri CEO Alan Schmidt failed to respond to a series of questions provided by A Current Affair.
Domacom announced its acquisition of Austagri Group Limited to the ASX last September stating the company has "operations spanning dairy, fresh milk, milk powder and infant formula, as well as the export of livestock and chilled beef and lamb". (A Current Affair)Those questions included exactly what ownership convicted fraudster Phillip Barros currently holds in Austagri Group Limited.
Until March, a man named "Pbarro" was listed on the Austagri website in a senior leadership position who is in fact former fraudster Phillip Barros.
Mr Barros, who has also previously gone by the name Phillipe Barros and Felipe De Barros, has been bankrupt twice, and banned from company directorship four times by financial regulator ASIC.
Austagri CEO Alan Schmidt. (Supplied)Domacom CEO Arthur Naoumidis told A Current Affair he is "friendly with" Mr Barros but understands he no longer has any role with Austagri.
Austagri has used two different entities in the past, one of them is Austagri Pty Ltd (AAPL) which is majority owned by a company called International Capital Group Australia Pty Ltd (ICGP), whose sole director and shareholder is Phillip Barros.
The current ASX deal is listed with a different entity, Austagri Group Limited, but its CEO Alan Schmidt is also the sole director of AAPL, which is majority owned by Mr Barros.
Phillip Barros. (A Current Affair)Both Austagri companies and ICGP have a common link, sharing the same accounting firm in Melbourne's Toorak as their registered address at various times in their history.
It has been confirmed that Melbourne barrister Robert Richter QC is a shareholder in Austagri Group Limited, he's also listed on its website as a "Board-appointed advisor" specialising in "strategic investment".
Another QC Remy Van De Wiel is also listed.
Melbourne barrister Robert Richter QC (left), Tony Murdaca (middle), and QC Remy Van De Wiel (right). (A Current Affair)It is understood that both barristers' appointments as advisors will not start until after Austagri Group Limited acquires Cedar Meats.
Listed beside the two QC's names is Tony Murdaca, he was given a two-year ban by ASIC from company directorship back in 2006 over three smash repair companies that went bankrupt owing $867,000 in debt. Search his name on austlii.edu.au.
It's understood the two legal heavyweights are being brought into Austagri by Mr Murdaca, with that trio operating another Melbourne business called International Vehicle Inspection Centre, which undertakes "structural integrity inspections" for vehicles that have been in an accident.
Nick Bahl, is the builder behind Bahl Homes and Sizzlin, an entertainment company focussed on bringing the best of Bollywood to Australia. (A Current Affair)Also listed as director of this company is Nick Bahl, the builder behind Bahl Homes and Sizzlin, an entertainment company focussed on bringing the best of Bollywood to Australia.
Nick Bahl is also listed as a director of Austagri Group Limited, the company now at the centre of this very complicated deal to buy Cedar Meats.
Austagri has held a contract to buy Cedar Meats since 2018 but so far has failed to secure financing to complete it.
Cedar Meats. (A Current Affair)Anyone who has bought shares in publicly-listed Domacom are nervously watching this deal and wondering why it's taken so long to complete.
Domacom announced its acquisition of Austagri back in September last year, pending final completion of the Cedar Meats purchase, sending Domacom shares soaring from three cents, around a month earlier before hitting a high of 10 cents in the days after the announcement.
The Motley Fool's Scott Phillips says the idea of a great new "paddock-to-plate" business "is always going to see the share price pop".
The Motley Fool's Scott Phillips. (A Current Affair)"Investors are looking for the next big thing. The question of course for investors is it really the next big thing, or is it just hopes and dreams?" Mr Phillips said.
The Motley Fool warned its readers of a previous Austagri deal announced to the ASX three years ago claiming the company would supply baby formula to China for five years with listed company Jatenergy.
That deal collapsed within a month.
Austagri. (A Current Affair)"Anyone can do a deal, anyone can sign a contract, anyone can announce something that might happen in the future," Mr Phillips said.
"But when you see a business with no track record, not a lot of assets or history in these areas, those promises should only count for so much."
In Domacom's release to the ASX in September, the headline figure was it could bring a potential $300 million in "funds under management" but CEO Arthur Naoumidis now admits Austagri will have less than a third of that amount of assets even if the Cedar Meats deal proceeds.
Domacom CEO Arthur Naoumidis. (A Current Affair)"The fee that we've agreed is $2.8 mil and this fee is what $325 million would give us," Mr Naoumidis said.
"I don't give a toss what the actual value of the sub fund is, we're going to treat it as if its $325 mil for the purposes of charging you a fee," he said.
"I can assure you from our side, we are under significant legal obligations to ASIC and the ASX for everything that we've disclosed. I'm very confident that everything I say I have documentary evidence for it," he said.
Corporate regulator ASIC. (A Current Affair)Mr Naoumidis said he's seen evidence of deposits paid for the Cedar Meats purchase, understood to be around $7 million, though A Current Affair has uncovered that was not paid by Austagri or any of its associated entities, instead a third party has paid on Austagri's behalf.
Corporate regulator ASIC said in a statement it will now examine these issues.
"At this stage, we understand the acquisition has not progressed," the ASIC statement read.
"ASIC will examine the issues raised to determine if there are any breaches of the Corporations Act."
$100,000+
Est. Return
4.0% p.a.$ 800,000
Melton South
Vic
Est. Return
6.18%$2.1 million
Rossmore, Sydney
NSW
Est. Return
13% pa #That terrible returns for such a high risk. 👎
Those are "projected returns" not actual returns.
I came across them when they first started about 3yrs ago .. found out about them with the Kidman station funding (one of australias largest land farmland holdings, it was in jeopardy of being sold to foreign investors), it was on news which gave them good exposure. The fact that their investment is approved for SMSF was supposed to be a big deal.
At the time I didnt participate in their investments for several reasons, including the fact that they were new to market, I dont necessarily benefit from fractional property investment (e.g I could simply leverage my assets to buy a property directly, without having the troubles or fees involved in fractional investment). Others who have been priced out of the property market may find it as a suitable investment as you are purchasing units of shares in the asset rather than the whole.
Anyway, to cut a long story short, I never ended up investing in domacom, and with a quick look at their asx share price, I cant imagine them to be doing that well and trading at a quarter of their public offer. The concept just hasnt been around long enough to be proven. Granted that domacom's share price does not reflect the individual investment returns, I would still say, after 3 years if some investments have provided great returns, more have been duds. So due diligence is advised, and higher returns often mean higher risks.