Ovanti Raises $1M to Fuel US BNPL Push and Litigation Costs
Ovanti Limited is set to raise approximately $1 million through a two-tranche share placement to support its US buy now, pay later expansion and ongoing legal matters.
- Placement to raise ~$1 million via 588 million new shares at $0.0017 each
- First tranche of 212 million shares issued under existing capacity, second tranche requires shareholder approval
- Funds earmarked for litigation, US BNPL operations, working capital, and placement expenses
- Clee Capital appointed lead manager, receiving cash fees and options
- Shareholder meeting pending to approve second tranche and placement fees
Placement Details and Capital Raise
Ovanti Limited (ASX, OVT), a fintech company specialising in digital commerce and mobile banking solutions, has announced a placement to raise approximately $1 million. The capital raise involves issuing 588,235,294 new shares priced at $0.0017 each, split into two tranches. The first tranche of 212 million shares will be issued under the company’s existing placement capacity, with settlement expected on 6 June 2025. The second tranche, comprising 376 million shares, will require shareholder approval at a forthcoming general meeting.
Purpose of Funds and Strategic Focus
The funds raised will be allocated to several key areas. Ovanti plans to use the capital to support ongoing litigation matters, which remain undisclosed but evidently significant enough to warrant dedicated funding. Additionally, the company is investing in its expansion of buy now, pay later (BNPL) services in the United States, a strategic move that could open new revenue streams in a competitive market. Working capital needs and the costs associated with the placement itself will also be covered by the proceeds.
Role of Clee Capital and Shareholder Considerations
Clee Capital has been appointed as the lead manager for the placement. The firm will receive a 6% fee on the gross amount raised, exclusive of GST. Subject to shareholder approval, Clee Capital will also be granted 75 million options exercisable over three years at prices ranging from $0.0025 to $0.003 per share. This fee structure aligns the interests of the lead manager with Ovanti’s future share price performance but will dilute existing shareholders if approved.
Context Within Ovanti’s Business Operations
Ovanti’s core business revolves around fintech and digital commerce software solutions, primarily servicing institutional clients in Malaysia and Indonesia. Its technology enables secure mobile banking and payment processing, with a growing footprint in telecommunications over-the-top (OTT) services. The company’s push into the US BNPL market represents a significant geographic and product expansion, leveraging its fintech expertise to tap into a lucrative but crowded sector.
While the placement provides necessary capital, it also highlights the challenges Ovanti faces, including the need to fund litigation and the risks inherent in entering a new market. Investors will be watching closely for updates on the shareholder meeting outcomes and the company’s progress in the US BNPL space.
Bottom Line?
Ovanti’s $1 million raise sets the stage for its US expansion and legal battles, but shareholder approval and execution remain critical hurdles.
Questions in the middle?
- What are the specifics and potential impact of the ongoing litigation funded by this raise?
- How will Ovanti differentiate its BNPL offering in the competitive US market?
- When will the shareholder meeting be held, and what is the likelihood of approval for the second tranche and placement fees?
