Yellow Brick Road Holdings Limited this afternoon announced that it has entered into unconditional contracts with two separate entities to raise $7 million.
Macquarie Bank plus the Christopher Joye-backed Coolabah Ventures have acquired a collective 17.5 million shares in the business at $0.40 per share.
Once the transaction is finalised Macquarie will realise an 8.3 per cent stake (15,000,000 shares) in Yellow Brick Road and Coolabah 1.4 per cent (2,500,000 shares).
Settlement of the subscription and the issue of new shares are expected to be completed by the close of business on 24 December 2012.
According to the group, the funds raised by private placement will help accelerate additional business growth as the company continues its branch and product expansion across mortgages and financial advice.
The transaction follows the announcement in early November that Yellow Brick Road had entered into a funding agreement with Macquarie to offer discounted mortgages to customers.
At the time the business said it would take its brand and branch distribution footprint to drive market share and establish much needed competition in the financial services sector.
“Macquarie Bank doesn’t just represent a strong partner in mortgages, it is the broader banking offering and wealth management proposition which was of interest to us – there is considerable potential for them to support us in other areas,” Yellow Brick Road CEO Matt Lawler said last month.