Ovanti Limited has completed a $1.08 million capital raise through a large share placement aimed at funding its growing U.S. buy now, pay later business and global operations.
- Raised $1.08 million via placement of 786.5 million shares at $0.001374 each
- Funds to support U.S. BNPL business expansion and merchant partnerships
- Placement conducted by Clee Capital with a 6% fee plus 60 million options issued
- Shares issued under ASX Listing Rule 7.1A at a 15% discount to VWAP
- Proceeds also allocated to legal expenses and working capital
Capital Raise Details
Ovanti Limited (ASX, OVT), a fintech company specialising in digital commerce and mobile banking solutions, has successfully completed a capital raise of approximately $1.08 million. The company issued 786.5 million ordinary shares at a price of $0.001374 per share, representing a 15% discount to the 15-day volume weighted average price. This placement was conducted under the company’s placement capacity as per ASX Listing Rule 7.1A.
The placement was facilitated by Clee Capital, which will receive a 6% fee plus GST on the funds raised. Additionally, Clee Capital will be granted 60 million options exercisable at $0.003 each, with a three-year expiry period. This arrangement aligns incentives between the capital raiser and Ovanti as the company pursues its growth strategy.
Strategic Use of Funds
The proceeds from this capital raise are earmarked primarily to support Ovanti’s expansion of its buy now, pay later (BNPL) services in the United States. This move into the U.S. market represents a significant growth opportunity for the company, leveraging its fintech expertise and existing technology platform. Funds will also be directed towards securing merchant and partnership agreements critical to scaling the BNPL business.
Beyond the U.S. BNPL initiative, the capital will cover global operational costs, legal expenses, and general working capital requirements. Ovanti’s existing operations in Malaysia and Indonesia, which include mobile banking and digital payments servicing banks and telecoms, provide a solid foundation as the company broadens its international footprint.
Market and Investor Implications
While the capital raise dilutes existing shareholders due to the large volume of new shares issued, it is a necessary step to fund Ovanti’s ambitious growth plans. The 15% discount to VWAP is a typical concession to attract professional and sophisticated investors quickly. The issuance of options to Clee Capital further incentivises ongoing support from the placement agent.
Ovanti’s move into the U.S. BNPL market places it in a competitive but rapidly expanding sector, where fintech innovation continues to disrupt traditional payment models. The success of this expansion will be closely watched by investors, particularly regarding how quickly Ovanti can establish merchant partnerships and gain market traction.
Overall, this capital raise signals Ovanti’s commitment to scaling its fintech solutions beyond Southeast Asia and into one of the world’s largest consumer markets.
Bottom Line?
Ovanti’s fresh capital injection sets the stage for a pivotal push into the U.S. BNPL arena, but execution risks remain.
Questions in the middle?
- How quickly can Ovanti convert the raised funds into meaningful U.S. BNPL market share?
- What merchant partnerships or agreements are already in place or forthcoming in the U.S.?
- How will existing shareholders respond to the dilution from this large placement?