Openn Negotiation’s Voluntary Administration: What’s Next for the Suspended ASX Tech Firm?
Openn Negotiation Ltd has entered voluntary administration following a failed $2.5 million capital raise, with its shares suspended on the ASX. Administrators have secured funding to maintain operations while pursuing a sale or recapitalisation.
- Failed $2.5 million capital raising to fund acquisition and operations
- Voluntary administration appointed due to insolvency concerns
- Shares suspended on ASX since May 2024
- Administrators secured funding and initiated sale/recapitalisation campaign
- Deed of Company Arrangement effected in January 2025; shares remain suspended
Corporate Turmoil and Suspension
Openn Negotiation Limited, a property technology company listed on the ASX, has faced a turbulent quarter ending June 30, 2024. After announcing a material acquisition and a $2.5 million capital raising in early May, the company’s shares were halted and subsequently suspended from trading. The capital raising failed to attract sufficient investment, prompting the board to appoint voluntary administrators on May 13 amid concerns over insolvency.
Administrators Take Control
Richard Tucker and John Bumbak of KordaMentha assumed control, immediately implementing measures to preserve the company’s assets and maintain business operations. They secured a $350,000 loan with steep terms to fund ongoing trading costs and launched a campaign to sell or recapitalise the company or its subsidiaries. This strategic move was aimed at protecting creditor and shareholder interests while exploring viable paths forward.
Operational Impact and Strategic Pause
Prior to administration, Openn had continued operating its core digital real estate platform but significantly scaled back product development and customer acquisition due to resource constraints and restructuring focus. The acquisition of Australian proptech firm Proffer was announced but overshadowed by the company’s financial distress. The administrators’ reports to creditors detailed a Deed of Company Arrangement (DOCA) proposal, which was approved for subsidiaries but delayed for the parent company pending asset dealings.
Financial Position and Outlook
Cash flow remains tight, with only 0.44 quarters of funding available based on current operating cash burn. The company has no immediate plans for further capital raising outside potential acquisition-related proposals. The administrators retired in January 2025 following DOCA effectuation, but the company’s shares remain suspended as new directors seek opportunities to restore value. Related party payments during the quarter amounted to approximately $114,000, primarily for director salaries and fees.
What Lies Ahead?
While the company has survived the immediate crisis through administration and funding, its future hinges on successful recapitalisation or sale of assets. The ongoing suspension of shares limits liquidity and investor confidence, underscoring the challenges ahead. The new board faces the delicate task of navigating a path back to trading and operational stability in a competitive proptech landscape.
Bottom Line?
Openn Negotiation’s path to recovery remains uncertain, with market watchers keenly awaiting clarity on recapitalisation and return to trading.
Questions in the middle?
- What are the new directors’ concrete plans to restore shareholder value?
- How will the company finance operations beyond the limited cash runway?
- What impact will the prolonged suspension have on customer and partner confidence?
