Ovanti Limited Raises $1.2 Million for Working Capital and Litigation Costs
OVT (OVT) Share Update July 2024 Wednesday 24th
Ovanti Limited Announces $1.2 Million Capital Raise
Ovanti Limited (ASX: OVT) has announced a successful capital raise of $1.2 million through the placement of 300 million ordinary shares to sophisticated investors. The funds will be used to bolster working capital and cover litigation costs.
Instant Summary:
- Ovanti Limited raises $1.2 million through share placement.
- 300 million ordinary shares issued at $0.004 per share.
- Funds to be used for working capital and litigation costs.
- Clee Capital acted as Lead Manager, receiving a 6% + GST brokerage fee.
Capital Raise Details
Ovanti Limited (ASX: OVT) has successfully raised $1.2 million through a share placement to sophisticated investors. The placement involved the issuance of 300 million ordinary shares at a price of $0.004 per share. This capital raise is aimed at strengthening the company's working capital and providing for costs associated with ongoing litigation and investigations.
The placement was conducted under the company's placement capacity, in accordance with ASX Listing Rules 7.1 and 7.1A. Clee Capital acted as the Lead Manager for the placement and will receive a brokerage fee of 6% plus GST.
Use of Funds
The funds raised from this placement will be primarily utilized for two key purposes:
- Working Capital: Ensuring the company has sufficient liquidity to support its ongoing operations and strategic initiatives.
- Litigation and Investigations: Covering the costs associated with legal proceedings and investigations that the company is currently involved in.
About Ovanti Limited
Ovanti Limited is a fintech and digital commerce software solutions provider. The company offers services that enable institutional customers to securely authenticate end-user customers and process banking, purchase, and payment transactions. Ovanti's core technology platform allows large customer communities to connect with end users using any mobile device, integrating mobile technology into their existing business and customer product offerings.
Ovanti's business divisions include Mobile Banking and Digital Payments, serving leading banks in Malaysia and major telcos and corporations in Malaysia and Indonesia. The company also collaborates with telecommunication network providers to offer mobile OTT (over-the-top) services, leveraging their subscriber base to build active communities.
The successful capital raise is a positive development for Ovanti Limited, as it strengthens the company's financial position and provides necessary funds for ongoing litigation and operational needs. However, the issuance of 300 million new shares may lead to some dilution of existing shareholders' equity. The market reaction will depend on how effectively the company utilizes the raised funds to achieve its strategic goals and manage its legal challenges.
Investor Reaction:
Analysts have generally viewed the capital raise as a necessary step for Ovanti Limited to maintain its operations and address legal costs. Some investors are optimistic about the company's ability to leverage the funds to drive growth, while others are cautious about the potential dilution of their holdings.
Conclusion:
Investors should closely monitor Ovanti Limited's use of the raised funds and its progress in addressing litigation and operational challenges. The company's ability to effectively deploy the capital will be crucial in maintaining investor confidence and driving future growth.