Ohmyhome Ltd sells real estate business for token US$1 due to poor business and continued losses

[SINGAPORE] Singapore-founded Ohmyhome Ltd has sold its main real estate brokerage business and will now focus entirely on digital marketing. The property businesses will continue to run privately and its leadership under sisters Race and Rhonda Wong will remain unchanged.

In June 18 filings lodged with the US Securities and Exchange Commission, the Nasdaq-listed company said it had sold its wholly owned subsidiary, Ohmyhome (BVI), to a corporate vehicle called Sterling Oat for US$1 (S$1.30).

Ohmyhome (BVI) is the holding company of Ohmyhome Singapore and its subsidiaries, which are engaged in providing real estate brokerage and property-related services in Singapore and Malaysia.

These services include property brokerage, property management, renovation and home improvement services, mortgage referrals, legal referrals and other ancillary property-related services.

Ohmyhome Ltd said it decided to dispose of its subsidiary after evaluating its declining revenue and continuing operating losses.

It added that the purchase price of US$1 was determined based on the negative net asset position of Ohmyhome (BVI). As at March 31, the subsidiary’s liabilities exceeded its assets by $14.77 million, the filings showed.

Disclosures by Ohmyhome Ltd also showed that the sale came after it had unconditionally waived $19 million in debt owed to it by the subsidiary.

The company’s board said the debt waiver was in the best interests of the company and meant to strengthen Ohmyhome (BVI)’s financial position.

Following the sale, Ohmyhome Ltd will no longer operate any real estate brokerage or property-related businesses. Instead, it will focus on digital marketing services, including digital marketing strategy, content creation, online advertising campaigns and performance monitoring.

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No further information was provided on the new ownership structure, or whether Singapore customers were adequately informed of the restructuring.

When contacted, Rhonda Wong, chief executive of Ohmyhome’s operations in Singapore and Malaysia, noted that the property businesses continues to operate as usual under a private business structure, and that its Ohmyhome app and website, property agents, and renovation and property management business are still operating and clinching new deals.

Wong noted that she and her sister Race, who are co-founders of Ohmyhome, will continue to lead the property businesses.

There will be no retrenchments, she added. THE STRAITS TIMES