- Payment processor Novatti Group (NOV) has received firm commitments for a $10.2 million capital raise
- 40 million fully paid shares will be issued to institutional and sophisticated investors at a price of 25 cents each
- Subject to shareholder approval, both the Managing Director and Non-Executive Chairman will each subscribe for 400,000 shares, worth $100,000
- Novatti will use the money to build on its growth strategy, increase business development resources, secure new partnerships, and acquire new Visa card issuing programs
- Company shares are down 5.63 per cent on the market and are trading for 33.5 cents each
Payment processor Novatti Group (NOV) has received firm commitments for a $10.2 million capital raise.
A total of 40 million fully paid shares will be issued to institutional and sophisticated investors at a price of 25 cents each.
Subject to shareholder approval, Managing Director Peter Cook and Non-Executive Chairman Peter Pawlowitsch will each subscribe for 400,000 shares, worth $100,000.
Novatti will use the money to build on its growth strategy, increase business development resources, secure new partnerships, and acquire new Visa card issuing programs.
The company will also use the funds to focus on partnering with Alipay to integrate its China-focused cross-border payments into Alipay’s app.
“This capital raising will provide the funding for Novatti’s next growth phase and to capitalise on the shift towards increased digital banking and payments that has been seen through COVID-19,” Peter commented.
“We strongly believe that the shift to a cashless society will accelerate going forward and, with Novatti already being fully digital, we are well placed to capitalise on this rapidly expanding market,” he added.
Novatti is down 5.63 per cent on the market and shares are trading for 33.5 cents each at 12:20 pm AEST.