Key Highlights

  • Shareholders voted down the $701,000 second Tranche of the August Placement at an extraordinary general meeting on 4 November, with 71.26% of votes against.
  • Cash was $227,000 at 30 September, with about 0.46 quarters of funding.
  • The company is exiting buy now, pay later and is focusing on iSentric, its Malaysian mobile banking and payments business.
  • Its 1-for-1 entitlement offer at $0.002 raised only about $69,554, leaving more than 1.1 billion shortfall shares.

Ovanti (ASX:OVT) funding plan hit a setback on 4 November 2026. At an extraordinary general meeting, shareholders voted down the resolution to approve the $701,000 second tranche of its August placement. On the poll, 71.26% of votes cast were against.

That vote matters because of the company's cash position. According to its September quarter Appendix 4C, released on 20 October 2026, Ovanti held $227,000 in cash at 30 September and had about 0.46 quarters of funding. The 4C had pointed to Tranche 2 as a source of further cash, subject to that vote.

From BNPL to Malaysian banking software

Ovanti, formerly focused on buy now, pay later (BNPL), said on 20 August 2026 that it would exit BNPL in every Jurisdiction after a strategic review. It added that its US BNPL entity remains in Chapter 7 Bankruptcy proceedings. The company is now centred on iSentric, its established Malaysian business. iSentric provides mobile banking, authentication, messaging and payment services to banks, telcos and corporate customers, and the company said it generated about A$3.58 million in FY26 revenue.

The company is also developing earlier-stage products. JuncturaX, a Supply Chain Finance platform, completed what Ovanti called a successful anchor-client proof of concept in Malaysia, with a commercial launch targeted for the first quarter of calendar 2027. On 8 October, iSentric signed a memorandum of understanding with ETHSystems on infrastructure. Proofs of concept and MOUs are not contracted revenue.

Ovanti also reported that the Malaysian High Court awarded iSentric RM5,169,333 in a judgment announced on 23 September 2026. The company says enforcement is being pursued, but a judgment is not the same as cash recovered.

Cash, raisings and dilution

The 4C showed a net operating outflow of $491,096 for the September quarter, down from about $5.4 million in the June quarter. Customer receipts rose to $793,472. Financing inflows of $432,000 included $299,000 from Tranche 1 of the placement and $100,000 already received towards Tranche 2, pending allotment.

Ovanti has raised Capital at very low prices. Its 1-for-1 entitlement offer at $0.002 a share, which closed on 1 September, raised only about $69,554, leaving more than 1.1 billion shortfall shares. The board then placed 50 million shortfall shares on 23 October and 100 million on 30 October, each at $0.002, raising a combined $300,000. Shareholders did approve the ratification of Tranche 1, the issue of broker Options and a resolution for a future placement, which leaves another route to fresh equity, with further dilution.

Shares were suspended on 1 October 2026 for late lodgement of the audited Annual Report and reinstated on 7 October after the accounts were lodged.

Risks and upcoming dates

The most immediate risk is funding. With the second tranche rejected and less than half a quarter of cash at the end of September, the figures suggest Ovanti will need new capital soon, which would likely mean issuing more shares. Other risks include customer concentration in Malaysia, residual costs from the BNPL exit and the uncertain timing of any recovery under the court judgment.

The Annual General Meeting is scheduled for 2pm AEDT on Tuesday 24 November 2026 in Sydney, with online proxies closing on 22 November. The December quarter 4C, due by the end of January 2027, should show whether the lower cash burn has held.