The Real Brokerage will offer common shares on the Nasdaq from the second quarter of 2020. The company is already traded on two other exchanges.
Real Brokerage Inc., the Canada-based holding company of Brokerage Real, will be listed on the Nasdaq in the second quarter of 2021, according to a press release on Thursday. The company already trades common shares on the Canadian TSX Venture Exchange under the ticker REAX.
The Real Brokerage also offers common stocks of QTC Markets Group (OTCQX) under the ticker REAXF, which will be changed once the Nasdaq filing is approved by the Securities and Exchange Commission (SEC).
“Real will file a 40-F registration statement with the US Securities and Exchange Commission prior to an anticipated listing on the Nasdaq,” the short reading reads. “The listing of Real shares on Nasdaq continues to be subject to Nasdaq approval and compliance with all applicable listing and regulatory requirements, including compliance with required share price requirements and the SEC to make the Form 40-F registration statement effective.”
The Form 40-F Registration Statement is specifically designed for Canadian companies wishing to begin trading in the United States and provides US investors with standard information about the security and company, as well as domestic and Canadian contact information for the security issuer. After going live on the Nasdaq, The Real Brokerage will continue to use this form for filing annual reports.
A spokesman for Real told Inman that the company has “no target price for a capital increase” because they are already public in the Canadian markets and are not “planning a public offer at the same time as the Nasdaq listing”.
The price per share of the Real Brokerage for the OTCQX has fluctuated between $ 0.78 and $ 2.85 with a market cap of $ 257.68 million since it went live in January 2021. On the TSX Venture Exchange, the price per share has fluctuated between $ 0.15 and $ 3.66 since it went live in January 2020 with a market capitalization of $ 325.15 million.
In December, Real raised $ 20 million through a participation agreement with Insight Partners to bolster its agent’s mobile app and expand the broker’s presence, which currently spans 27 states and the District of Columbia.
In addition to a virtual business model, Real offers an 85-15 commission breakdown that converts to a 100 percent breakdown after individual agents hit an annual cap of $ 12,000. Team leaders have an annual cap of $ 21,000 and an annual cap of $ 6,000 for each of their team members. Once the upper limit has been reached, agents and team leaders also pay transaction and leasing fees and can use the broker’s revenue sharing and stock option programs.
The brokerage has taken a slow and steady approach to growth, approaching the 2,000 agent mark by the end of the first quarter of 2021 (1,895 agents) after years of flat growth.
“We reached out to the agents who we saw had no engagements, interactions with us, or transactions, and we just asked,” Are you serious about running real estate? “Real founder Tamir Poleg said in 2018 of his recruiting and retention tactics.” And whoever wasn’t, we kindly asked them to leave.
Even so, Real increased its revenue in the first quarter of 2021 by 217 percent to $ 9.3 million. This is evident from the unaudited results published on April 15th. The company is also profitable, according to the latest audited results for the fourth quarter of 2020.
“These preliminary results reflect the extraordinary momentum Real has seen since trading on the TSX Venture Exchange in June 2020 and the OTCQX in August 2020,” said Poleg of the company’s stock market performance.
“More agents and teams are joining Real to enjoy better commission sharing, innovative technology, revenue sharing, flexibility, and an attractive agent stock incentive plan.”
“Agent growth, in turn, is fueling the accelerated growth of our business,” he added.
Email Marian McPherson