Novatti Raises $1M at 2.75c to Fuel Acquiring Business Expansion

Strategic Investment Signals Confidence

Novatti Group Limited (ASX, NOV), a payments technology company bridging traditional and digital finance, has secured a $1 million growth funding commitment from Australian Wealth Advisors Group Ltd (AWAG) and its subsidiary Armytage Private. This capital injection, delivered through a share placement, is designed to underpin Novatti’s strategic pivot back to growth after a successful turnaround phase.

AWAG, a Melbourne-based investment management firm with a focus on Australian equities, has been tracking Novatti’s progress closely. Their investment reflects confidence in Novatti’s recent financial improvements and growth potential, particularly within its Acquiring business segment.

Funding to Accelerate Growth Initiatives

The $1 million will be allocated to key growth drivers including increased marketing efforts in targeted verticals, strengthening sales capabilities in acquiring, and enhancing product features. Novatti aims to replicate the EBITDA-positive growth it has recently achieved in its Issuing business within the Acquiring division, which is critical to its broader growth ambitions.

The share placement involves issuing 36,363,636 fully paid ordinary shares at 2.75 cents each, a price set at a discount but compliant with ASX listing rules. Additionally, 18,181,818 free-attaching options will be offered, exercisable at the same price by 31 March 2026, potentially unlocking a further $500,000 in capital if exercised and approved by shareholders.

Positive Early Financial Results Bolster Outlook

Novatti’s recent quarterly results provide a solid foundation for this growth push. The company reported positive operating cashflow of $0.2 million and an EBITDA of $0.1 million in Q1 FY26, alongside a $1 million increase in available cash to $3.6 million. Margins have also improved significantly, with a 100% increase in group margin following revenue base reforms and a sustained 50% margin in its Australia/New Zealand payments operations.

CEO Mark Healy expressed enthusiasm about the partnership, highlighting AWAG’s strategic value beyond capital, including their expertise and network. Meanwhile, AWAG’s Executive Chairman Lee laFrate emphasized their rigorous investment criteria and belief in Novatti’s growth trajectory and turnaround execution.

Looking Ahead

Novatti’s ability to leverage this funding effectively will be closely watched by investors. The company’s next steps include shareholder approval for the options issue and execution of its growth initiatives. Success in these areas could mark a meaningful inflection point for Novatti as it seeks to solidify its position in the competitive payments landscape.