Email to investors and interested followers of the business:
Good morning,
I’m pleased to announce that $10.5m in new funding has been committed to support the continued delivery of Novatti’s growth strategy.
As flagged in our June quarter update, Novatti has been considering ways to unlock further growth funds, including by leveraging its assets to avoid shareholder dilution.
To this end, the new funds will be raised through a corporate bond issue and will particularly support growth in Novatti’s core payment processing business as well as providing capital for its proposed banking business, for which we remain confident of progress being made in securing final licence approvals.
The bond has been fully subscribed to by institutional investors, which highlights the strength of Novatti’s existing business and future prospects.
In addition to these new funds, and following recent updated guidance from Reckon Limited, the special dividend that Novatti could expect to receive from its stake in Reckon is circa $12.5m. Importantly, these new funds do not detract from our focus on becoming cashflow positive.
You can read more details about the bond in Novatti’s full ASX release by clicking below.
June Quarter Update: https://novatti.com/wp-content/uploads/2022/07/FY22-revenue-exceeds-32m-as-Q4-cash-use-falls-48.pdf
Alternative Interview from 9th August, 2022: https://www.youtube.com/watch?v=oZhavkCq6UU
Further information: https://novatti.com/wp-content/uploads/2022/08/MST-Access-NOV-Update-4Aug22.pdf