Openn Group of Companies - Case Update

John Bumbak and Richard Tucker of KordaMentha have provided an update on their administration of the Openn Group of Companies since being appointed on 13 May.

The Perth-based companies were founded in 2016 and developed an online sales tool that facilitates real-time negotiation of property for buyers, sellers and real estate agents.

Parent company Openn Negotiation listed on the ASX in 2021. Like other startups, the companies were heavily reliant on capital injections from equity raisings to finance their operations.

In the year leading up to the appointment, the companies moved their pricing structure to a licencing method in an attempt to grow revenue, but were ultimately unable to scale up their sales sufficiently to meet ongoing capital requirements.

In early May, the companies announced the acquisition of Australian property technology company Proffer as well as a capital raising of $2.5 million (in part to fund the acquisition).

The voluntary administrators were appointed after the capital raising proved unsuccessful. They have received a draft DOCA proposal for the subsidiaries from Tribar and Final Offer, which provides for total consideration of $850,000 and the continued employment of five employees, and one for parent Openn Negotiation from Benelong, which provides for the compromise of certain related party debt and is conditional on the implementation of the subsidiary DOCA.