Kidman Station Update – 11 October 2016
Given the media attention in the past day about confirmed bids to purchase the Kidman & Co pastoral holding, I think it is a good time to update you all on the status of our Kidman Station crowdfunding campaign. Thanks to you, our Kidman campaign has been remarkable – we have received around $80 million worth of pledges from 5,500 investors of which nearly 600 had opened accounts with the DomaCom Fund.
Given the confirmed bids exceed the value that we could achieve, we have decided to wind up our Kidman campaign and divert our attention to a much more attainable rural opportunity that we believe will have significant structural benefits to Australian farmers – i.e. keeping the families on the land without the interference from banks or being sold to overseas interests.
I can assure you that a lot of work went on behind the scenes to keep our Kidman Station bid alive for over 10 months, and we are proud of our efforts. The Kidman campaign was always a very ambitious exercise and now I believe the real opportunity is for us to use this momentum to address the funding issue for our Australian farmers at a more grass roots level – one farm at a time.
New agricultural opportunities
New crowdfunding campaigns will be available from time to time.
These opportunities allow equity to replace bank debt and enable the family to focus on operating the business.
We believe that such opportunities should provide an attractive return to investors whilst providing the farmers that participate in establishing a sub-fund within the DomaCom Fund with a much more sustainable business model that supports succession planning. Domacom believes that by selling and leasing back the family farm, the farmers will not be burdened with debt or at least have debt relief (by selling a farm to the DomaCom Fund and paying out the debt from the proceeds of sale) and can use the released equity to support other activities such as fund the children to lease properties of their own whilst still retaining the operation of the family farm or improve the infrastructure on the properties in terms of fencing and irrigation.
For those investors who had an active bid in our Kidman bookbuild, yourt bid in the Kidman Station has been released and your Cash Pool balance will continue to earn the enhanced interest rate of 2.08%* whilst you decide on whether you wish to support the new campaign. (* subject to change)
I thank you for your support, and ask that you to wait a little while to hear about this next opportunity.
Arthur Naoumidis | CEO | DomaCom Ltd
General Advice Warning
This information is general advice only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Accordingly, before acting on the information provided you must consider the appropriateness of the information, in the light of your own objectives, financial situation or needs. If you wish to acquire a financial product within the DomaCom Fund offering, you should first obtain a copy of, read and consider, the PDS before making any decision. A copy of that PDS is available at http://www.domacom.com.au/the-domacom-fund/product-disclosure-statement/ or by calling your financial adviser.
DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product DisclosureStatement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au, or by phoning 1300 365 930.