Key Highlights

  • Ovanti announced on 20 August 2026 that it would exit BNPL activities worldwide and concentrate on iSentric.
  • The FY26 accounts show a loss after tax of A$23.6 million and cash of A$291,867 at 30 June 2026.
  • The August 2026 entitlement offer received applications for only 34.8 million shares, about A$69,554.

Ovanti (ASX:OVT) announced on 20 August 2026 that it would exit BNPL (deferred consumer payment) activities worldwide and concentrate on iSentric, its Malaysian fintech software business. The decision reverses a plan announced only a month earlier, and it was made while cash was low and the accounts carried a going-concern uncertainty.

From relaunch to exit

On 20 July 2026 Ovanti said two former Afterpay executives had joined an advisory board to guide a staged relaunch of its IOUPAY and myIOU brands, starting in Malaysia. Five weeks later, following a strategic review, the board said continued BNPL investment was not in shareholders' best interests. The US BNPL entity remains in Chapter 7 bankruptcy proceedings, and the company said it was preparing formal proceedings against the former head of that business, Peter Maher, seeking recovery of losses and damages. Those proceedings are stated intentions, not outcomes.

The remaining business

iSentric provides mobile banking, authentication, digital payments and enterprise technology to banks, telcos and corporates in Malaysia and Indonesia. The 20 August release put its FY26 revenue at about A$3.58 million, while the FY26 annual report, lodged on 6 October 2026, shows revenue from continuing operations of A$2.34 million. The two figures differ, and the release does not explain the gap.

According to the annual report, the Malaysian High Court on 22 and 23 September 2026 awarded iSentric about RM5.17 million (roughly A$1.78 million) against two defendants, although the report cautions that receipt is not confirmed. On 8 October the company announced a memorandum of understanding with EthSystems to explore non-exclusive cooperation; the announcement disclosed no financial terms and did not state whether the document is binding.

Financial position and funding

The annual report shows a loss after tax of A$23.6 million for the year to 30 June 2026, an operating cash outflow of A$21.3 million and cash of A$291,867 at year end, compared with A$4.9 million a year earlier. The accounts flag a material uncertainty over going concern and rely on continued support from Clee Capital and on cost reductions. The company's forecast assumes a A$3 million raising in December 2026 that, according to the filing, still has to be matched to specific funding sources.

Shareholders have been diluted repeatedly. A 20-for-1 share consolidation took effect on 10 April 2026. In August the company announced a 500 million share placement at A$0.002 (A$1 million), a 1-for-1 entitlement offer at the same price aimed at raising about A$2.29 million, and a possible further placement of up to A$2 million. The entitlement offer closed on 1 September with applications for only 34.8 million shares, about A$69,554, leaving a shortfall of roughly 1.11 billion shares that may be placed within three months at no less than A$0.002.

Trading status

ASX suspended the shares on 1 October 2026 over late periodic reports and reinstated them on 7 October after the accounts were lodged. An extraordinary general meeting notice dated 2 October covers ratification of share issues and future placements.

What to Watch

The items to follow are whether the December 2026 raising is secured, the placement of the entitlement shortfall, the pace of iSentric revenue, any recovery under the Malaysian court award and progress of the proceedings against the former US business head. Each involves either further dilution or uncertain timing.