Fintech Ovanti raises $1 million via two-tranche placement

Ovanti has raised $1 million from sophisticated investors via a two-tranche placement.

Ovanti has raised $1 million from sophisticated investors. Pic via Getty Images.

• Ovanti to raise $1 million from sophisticated investors via two-tranche placement

• Settlement of the first tranche raising $360,400 is expected to occur on June 6

• Ovanti in process of recruiting a CEO for its BNPL division (USA) to lead its US expansion

 

Special Report: Fintech Ovanti has locked in firm commitments from sophisticated investors to raise ~$1 million via a two-tranche placement priced at $0.0017 per share.

Ovanti Limited (ASX: OVT) said the capital raise would see the issue of ~588.2 million new shares, split between:

• Tranche 1: 212 million shares raising $360,400 under the company’s existing placement capacity
• Tranche 2: ~376.2 million shares raising ~$639,600, subject to shareholder approval at a future general meeting.

Settlement of the first tranche is expected to occur on June 6. Clee Capital acted as lead manager to the capital raise and will receive a 6% fee on the total funds raised.

Subject to shareholder approval Clee Capital will also be issued 75 million options. The options will be split into 50 million exercisable at $0.0025 and 25 million at $0.003, both with a three-year term from issue.

Strengthening capital amid US expansion

OVT said funds would be used to support ongoing legal proceedings, fund its US buy now, pay later (BNPL) operations, strengthen working capital and cover placement costs.

The company is in the process of recruiting a CEO of the BNPL division (USA) to lead its US expansion.

In a recent announcement OVT said it remained in active discussions with numerous highly experienced candidates based in the US and working for major BNPL industry players.

“Due to the critical nature of this decision, the company continues to make a significant
investment of time on due diligence in order to have full comfort that the new CEO shares the board’s vision for the future of the company,” Ovanti said.

“There are multiple roads of interviews involving multiple OVT board members.”

OVT said it was endeavouring to complete the process of hiring the new CEO by the end of financial year.

Sale ongoing of stake in Malaysian finance firm

Meanwhile, OVT said it was continuing efforts to sell its 21% stake in Malaysian finance firm i-Destinasi Sdn Bhd (IDSB).

The company said completion pends final sign-off from the Malaysian commercial bank funding the transaction.

OVT said it maintains its view that the asset is worth more than RM40 million (A$14-15 million).

The company remains in dialogue with IDSB but is also engaging non-exclusively with other parties and brokers to explore alternative sale options.

Should suitable offers arise, OVT noted it was open to completing the sale with another party on equal or superior terms.

This article was developed in collaboration with Ovanti, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Fintech Ovanti raises $1 million via two-tranche placement