Novatti Group's strategic capital raise

Novatti Group (ASX:NOV) has announced a significant capital raising initiative. The company is launching a pro-rata non-renounceable entitlement offer and a two-tranche placement to raise up to approximately $9.44 million. This move aims to support its strategic focus on becoming a leading Australasian payment solutions provider.

Novatti's forward-looking strategy and financial outlook

Novatti Group (ASX:NOV) is set to raise up to $9.44 million through a capital raising initiative, which includes an entitlement offer and a two-tranche placement. The funds will be used to repay liabilities, refresh the brand, penetrate vertical markets, and support new business initiatives. With a strategic focus on core payment solutions in the AU/NZ sector, led by new CEO Mark Healy, the company has already achieved significant cost savings and plans further reductions. Asset sales, including the sale of International Bank of Australia shares, are intended to bolster the strategic shift. Novatti aims for positive operating cash flow by January 2025 and an increased gross margin by FY27. Despite facing risks related to regulatory compliance and other operational challenges, Novatti is confident in its ability to achieve sustainable growth and financial stability.

Executive insights on Novatti's strategic direction

We are excited about the future of Novatti and the potential this capital raise provides. We are committed to driving Novatti towards positive cash flow by early 2025 and strengthening our position as a leading payment solutions provider in the Australasian market.