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Ovanti Ltd (ASX:OVT) is in talks with Nasdaq-listed Miluna Acquisition Corp (MMTXU) to effectively stage a backdoor listing on the world’s biggest technology index through what is called a “SPAC deal.”
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Disclaimer: This content has been prepared as part of a partnership with Ovanti Ltd and is intended for informational purposes only.
Ovanti U.S.’s flagship BNPL product, Flote, would be the main value prop for any interested investors and would allow the Australian company exposure to a highly liquid stock market closer to the market it’s targeting.
For its part, Miluna recently listed on the Nasdaq with 6M units at US$10/ea. If the deal goes through, Ovanti Ltd (Australia) would be the major shareholder.
The proposed deal with Miluna effectively values Ovanti at US$300M (A$460M); both entities must strike a business combination agreement to make the deal binding.
For those out of the loop, Ovanti’s goals with Flote are to provide BNPL to the subprime market and beyond in the U.S., where CEO Peter Maher told HotCopper many Americans, due to arbitrary credit scores, are unable to access finance solutions.
“Signing this LOI with Miluna is a significant step for Ovanti. It follows an extensive global process conducted since July. This transaction was set up by ARC Capital who have done an excellent job to identify the right U.S. SPAC partner for our U.S. BNPL business,” OVT Chair Daler Fayziev said.
“We are encouraged to see peers such as Zip, which is progressing a U.S. dual listing to maximise long-term shareholder value and support its U.S. growth, and Sezzle, which has gained strong momentum from American investors on Nasdaq. That reinforces our view that accessing U.S. capital… is the logical path for a U.S.-focused BNPL business.”
OVT last traded at 0.7cps.
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