Novatti Group Limited (ASX:NOV) Completes Capital Raising
Novatti Group Limited (ASX:NOV) has successfully completed the second tranche of its capital raising, securing an additional $2 million before costs. This amount contributes to a total of approximately $7.03 million raised under the capital raising initiative.
Capital Raising Details
The completion of tranche 2 involves the issuance of 50,000,000 fully paid ordinary shares, approved by shareholders at the Annual General Meeting held on 28 November 2024. This follows the first tranche, which raised $4,024,502 on 23 October 2024.
In conjunction with the share issuance, Novatti has allocated an aggregate of 155,852,587 options to recipients of the shares and to the lead managers for their services related to the capital raising.
Executive Insights
Mark Healy, CEO of Novatti, stated, “Since the start of FY24, the Novatti leadership team has been focused on the successful implementation of its turnaround strategy, which has already delivered tangible results.” He highlighted the importance of the raised funds in unlocking key growth catalysts, particularly within Novatti’s core payments business in Australia and New Zealand.
Healy added, “Funding will be applied to improve customer targeting, brand awareness, and the sale of higher yielding product mixes. A key target area for growth is gross margins across Novatti’s core business, with an FY27 target of over 70%.”
The company will pursue quotation of the options on the ASX, subject to relevant requirements.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.