Ovanti Limited Completes $6 Million Capital Raise Amid Strong Investor Demand
OVT (OVT) Share Update December 2024 Monday 9th
Ovanti Limited Successfully Completes $6 Million Capital Raise
Ovanti Limited (ASX: OVT) has announced the successful completion of a capital raise, securing $6 million from professional and sophisticated investors through a strategic share placement.
Instant Summary:
- Raised $6 million through placement of 300 million shares.
- Shares priced at $0.02, a 9.1% discount to last traded price.
- Funds to expand US team and cover legal, marketing, and tech costs.
- Joint Lead Managers to receive a 6% fee and 25 million unlisted options.
Capital Raise Details
Ovanti Limited has successfully completed a capital raise, securing $6 million from professional and sophisticated investors. The company placed 300 million ordinary shares at $0.02 each, representing a 9.1% discount to the last traded price of $0.022 on December 5, 2024. This placement also reflects a 21.8% discount to the 15-day volume weighted average price (VWAP).
The company initially sought to raise $5 million but received bids far exceeding this amount. To minimize dilution for existing shareholders, Ovanti decided to accept an additional $1 million from key strategic investors, bringing the total to $6 million.
Use of Funds and Strategic Plans
The funds raised will be directed towards several strategic initiatives, including the expansion of Ovanti's US team, legal and compliance costs, marketing and merchant acquisition, and technology and platform development. Additionally, the funds will support working capital and offer costs.
The placement is set to be completed under Ovanti's placement capacity as per ASX Listing Rule 7.1, with shares expected to be issued around December 17, 2024.
Role of Joint Lead Managers
Clee Capital Pty Ltd, Barclay Pearce Capital Management Pty Ltd, and Sanlam Private Wealth Pty Ltd acted as joint lead managers for the placement. They will receive a 6% fee on the funds raised and, subject to shareholder approval, a total of 25 million unlisted options with an exercise price of $0.04, expiring three years from the issue date.
The successful capital raise reflects strong investor confidence in Ovanti's strategic direction and growth potential. The funds will enable the company to expand its operations and enhance its technology platform, potentially boosting its market position. However, the discount on the share price may temporarily affect the stock's market performance.
Investor Reaction:
Analysts may view the successful capital raise as a positive indicator of investor confidence in Ovanti's growth strategy. The decision to limit additional funds to avoid shareholder dilution is likely to be well-received by existing investors.
Conclusion:
Investors should watch Ovanti's progress in deploying the newly raised funds towards its strategic initiatives. The company's ability to execute its expansion plans will be crucial in sustaining investor confidence and driving future growth.