The central point: a narrower business

Ovanti Limited (ASX:OVT) has told the market that it is leaving buy now, pay later (BNPL) altogether and will concentrate on iSentric, its Malaysian-based software and payments business. The decision, announced on 20 August 2026, reverses a July plan to relaunch BNPL in Asia.

What the company does

According to its 14 August 2026 offer announcement, Ovanti describes itself as providing Fintech and digital commerce software and services that let institutional customers authenticate users and process banking, purchase and payment transactions. Its divisions cover mobile banking and digital payments for banks, telcos and corporates in Malaysia and Indonesia, and mobile over-the-top services offered with telecom network providers.

The 20 August announcement put iSentric's fiscal 2026 Revenue at roughly A$3.58 million.

Latest developments

Ovanti's FY2026 results showed a net loss after tax of A$23,609,754, up from A$9,582,559 a year earlier. The company's US buy now, pay later Subsidiary is in Chapter 7 Bankruptcy proceedings in Delaware, and the board has treated that Business as discontinued. A proposed US listing transaction involving Miluna Acquisition Corp was terminated on 5 March 2026.

In the 20 August announcement, the board said it would allocate no further Capital to BNPL and had cut staff, consultant and non-core costs linked to the former US operation, although no dollar saving was disclosed. Ovanti also said it expected to begin formal legal proceedings against Peter Maher, former chief executive of the US BNPL business, to recover losses. These are statements of intent; no outcome has been reported.

Funding and dilution

Funding has come mainly from issuing shares at very low prices. On 12 August 2026 Ovanti announced firm commitments for about A$1 million through a two-tranche Placement of 500 million shares at A$0.002. The first tranche, about A$299,000, used existing placement capacity. The second, about A$701,000, needed Shareholder approval at a meeting yet to be called, and no confirmation that it has been completed was found.

A one-for-one non-renounceable entitlement offer followed, targeting about A$2.293 million at the same price, with up to 1,146,897,274 new shares. The 4 September 2026 results announcement showed applications for only 34,776,791 shares, raising about A$69,554. That left 1,112,120,483 shortfall shares which directors may place within three months of the close, at no less than A$0.002 each. Any such placement would increase the share count further.

Sector context and risks

Payments and banking software is a competitive field in South-East Asia. Risks evident from the filings include the cost and uncertainty of the bankruptcy and litigation, execution of a narrower strategy, and the repeated need for fresh capital. A low share price is not itself evidence of distress or of value; the filings are the better guide.

Upcoming milestones

No dated milestones were confirmed. On the company's timetable the shortfall placement window runs to roughly early December 2026, and the second placement Tranche awaits a shareholder meeting. The next quarterly Cash Flow report would normally be due by the end of October.