ASX-listed property technology company Openn Negotiation has appointed administrators from KordaMentha, citing challenges with raising funds to continue operating.
ASX-listed property technology company Openn Negotiation has appointed administrators from KordaMentha, citing challenges with raising funds to continue operating.
The Claremont-based company voluntarily appointed Richard Tucker and John Bumbak from KordaMentha to the company and its subsidiaries today.
Openn told the market the voluntary administration could be largely attributed to its failure to raise adequate funds to continue operating.
The Perth proptech facilitates real-time negotiations and communication in property transactions. It was founded by technology developer Peter Gibbons and WA real estate agents Peter Clements and Brad Glover in 2016, after later listed on the ASX in 2021.
It had partnerships with the likes of Corelogic and just last week announced its intention to buy Proffer Group, which was expected to boost its existing technology in digital property sales.
“The Openn directors are of the opinion that the company should be placed into voluntary administration to maximise the chance of continuing in existence, or if that is not possible, that a voluntary administration will result in a better return for the creditors and members of the company than would result from an immediate winding up of the company,” Openn told the market.
“The current situation has largely been precipitated by the failure of the company to successful raise the required funds to continue operations as a going concern”.
The decision follows industry speculation around job cuts last year, as the company prepared to announce a recapitalisation.
Openn secured a lifeline from Axiom Properties soon afterward, but questions have continued about the company's viability.
KordaMentha’s insolvency experts will run a ruler over the company to determine an appropriate strategy going forward. A creditors meeting will be held next week.
The administrators have requested that all trading of Openn’s shares remain suspended during the administration period.
Its shares last traded hands at 0.6 cents apiece.
