The Agency enters administration
Postscript: The federal court has reversed this decision. Read our story here.
The Agency has been placed into voluntary administration by Magnolia Equities which controls a 16.65 per cent stake.
In a statement, the borrower said that despite raising additional finance and offloading assets, a debt, believed to be $379,000, remains outstanding after repeated demands.
“Magnolia has lost confidence in the board and the unknown financial position of The Agency (AU1, the listed entity),” it added.
“BDO has been appointed…over AU1 only, not…any subsidiaries”.
The appointing of an administrator is not expected to disrupt the trading businesses.
Magnolia is reportedly controlled by Camilla Overgard, said to be the wife of businessman Mitchell Atkins who quit from The Agency board last May.
The borrower entered a $5.6m placement and entitlement offer with the brokerage 11 months ago (story continues below).
The Agency
The Agency was founded by former McGrath director Matt Lahood who within months poached dozens of ex-colleagues including the high-billing Ben Collier and Shad Hassen. Paul Niardone acted as chief executive as the company expanded.
Last May the brokerage firm secured $1 million through a convertible note subscription from horse breeder and investor Bob Peters.
Three months ago it suspended trading to raise $5m, part of which would have been used to pay down part of a $12m loan to Macquarie.
The Agency is reported to have lost $10.4m in the 2020 calendar year.
Shares were halted again today. It is capitalised at $15.25 million.
