Ovanti Faces Key Decisions on Asset Sale and Litigation Amid US Expansion

Strategic Leadership Appointment

Ovanti Limited (ASX – OVT) has made a significant move in its US market ambitions by appointing Peter Maher as CEO of its Buy Now, Pay Later (BNPL) business in the United States. Maher, formerly Zip Co Ltd’s USA Head of Enterprise Merchant Partnerships and Senior Director of High Growth, brings deep fintech expertise and a proven track record in scaling BNPL operations and forging strategic partnerships. His appointment follows a rigorous global search and was finalized in July 2025.

Notably, a legal challenge initiated by Zip Co over Maher’s non-compete clauses was withdrawn, clearing the way for him to fully assume his role. This outcome is a clear win for Ovanti, removing a potential obstacle to its US expansion.

NASDAQ Listing and Capital Strategy

Under Maher’s leadership, Ovanti is actively engaging with US stockbrokers and exploring pathways to list on the NASDAQ. The company is weighing two main options – a traditional dual-listing that would maintain its ASX presence alongside a NASDAQ listing, or a merger with a well-capitalized Special Purpose Acquisition Company (SPAC) to accelerate its US market entry.

Maher’s initial feedback suggests a SPAC merger could be the most expedient route, provided it achieves a minimum valuation of USD 300 million (around 10 cents per Ovanti share). This benchmark reflects confidence in Ovanti’s growth prospects and total transaction volume pipeline. The Board remains committed to securing shareholder approval for whichever path is chosen, ensuring alignment with investor interests.

Review of IDSB Asset Sale

Ovanti is also reassessing the potential sale of its wholly owned subsidiary, IDSB, which has been generating increasing dividend income; AUD 301,000 in the latest quarter and AUD 1.245 million over the past year. Previously, the asset was considered for sale at AUD 14-15 million, but new factors such as improved dividends and access to up to USD 100 million in debt funding for the BNPL loan book have prompted a revised valuation closer to AUD 18-20 million.

Maher’s fresh perspective suggests less urgency to divest IDSB at below-market prices, allowing Ovanti to better balance capital needs with asset value preservation amid strengthening market conditions.

Financial and Operational Highlights

As of 30 June 2025, Ovanti reported a cash balance of AUD 4.96 million, with operating cash outflows of AUD 1.495 million for the quarter. The company has recently completed a pro-rata entitlement offer and a placement raising approximately AUD 6.4 million combined, alongside repaying convertible notes totaling AUD 944,000. Ovanti’s subsidiary iSentric continues to perform strongly, handling over 30 million SMS authentication messages monthly, reflecting robust operational momentum outside the BNPL segment.

Ongoing Litigation and Corporate Developments

Litigation matters in Malaysia and Australia remain active, with claims exceeding AUD 40 million against former auditors and directors. The company anticipates filing additional claims in the Supreme Court of NSW in the coming quarter. Corporate changes include the resignation of a director and relocation of the registered office to Double Bay, NSW.

Overall, Ovanti is positioning itself for accelerated growth in the US BNPL market, leveraging new leadership, capital market strategies, and a careful review of its asset portfolio to maximize shareholder value.