CEO Reply

Arthur ,

Thanks for taking time out to reply, my interest in Domacom relates to a number of families who are/were investors in last years IPO who have now sold down or are still holding some interests. The Families that have sold have lost considerable amounts of their retirement funds ( collectively exceeding $327,000). The decline in share price
from 70 cents to 0.068 cents in less than a year has been devastating for many.

While we all appreciate the merits of fractional investing, I think we differ between the platform and legal structure vs the quality of assets contained within the platform. We had assumed that Domacom would provide quality investments and in that sense the platform was largely irrelevant. Syndication and MIS have been around for years and on a residential front have been promoted by the likes of Macquarie and down to many suburban accounting firms. Corporate Shares in stratum investments in both residential and commercial properties have been available since the 1950's and 60's in Melbourne from the top end of Collins St to many apartments in Toorak, Sth Yarra , Malvern etc, although now largely defunct.

The object of the shareholder group of families now is to either minimize losses for those who remain and for the others I think they have by and by moved on.

You seem to be now facing a capital crisis with your projected cash at 31 December 2017 at $700K, which will likely result in some form of capital restructure and potentially dilute shareholders further or worse.

Like Praemium it might be time to move on, In our opinion fractional investing is not a IT platform solution or the creation of a new set of Trust Deeds, rather its the opportunity for investors to place their funds into A grade investments not A grade IT Platforms. The mechanism and process should be transparent and readily able to be replicated.

In our opinion we believe there may be a way forward perhaps with a new management and board but less likely down the path Domacom is currently travelling.

Some shareholders will wait to see what happens, and I guess i'm entrusted to work with them while that goes on.

Thank you for time and your interest in the group of shareholders I am supporting.