Strategic review identifies external funding for growth initiatives: Novatti
ASX-listed Novatti have provided an update on its ongoing strategic review to simplify its business and identify external funding opportunities for the independent development of its growth initiatives, International Bank of Australia (IBOA) and AUDD Stablecoin.
Importantly, these funding opportunities contribute to Novatti’s mid-2024 target of achieving positive operating cashflow.
Novatti’s CEO, Mark Healy (pictured) said, “Since taking over as CEO, I have made it a key goal of FY24 to simplify and focus the Novatti business to pivot away from a diversified portfolio of independent businesses into a streamlined Payment Solutions company.
“A key pillar of achieving this goal has been undertaking a review of all business areas against strategic and financial goals, with the aim of identifying opportunities for portfolio optimisation and divestment.
“This process has identified opportunities for external funding in both the International Bank of Australia and AUDD Stablecoin, two of Novatti’s external growth initiatives, with the objective of providing for their independent development as we streamline the Novatti business.
“Securing external capital to fund the development of these businesses will greatly contribute to Novatti’s goal of achieving positive operating cashflow by mid-2024. The interest to-date highlights the continued demand and appeal in the market for these initiatives and, importantly, allows Novatti to maintain substantial exposure through its shareholdings to the growth of both businesses as they develop independently.
“This strategic review has already provided results for the Company, delivering in excess of a $4 million saving in future interest payments following the divestment of Novatti’s stake in Reckon Limited.
“The process is ongoing and we expect it to identify further opportunities for portfolio optimisation and divestment.”
International Bank of Australia
IBOA is working to finalise a Series A round, with a number of investors undertaking detailed due diligence.
In parallel, IBOA continues to work on technology deployment, deposit and loan product builds and development of its policies, procedures and compliance.
Planning works with global strategic partners continue to show the significant opportunities presented by a global payments bank that is focused on the provision of borderless banking and payment services.
AUDD Stablecoin
Novatti’s subsidiary AUDC Pty Ltd, trading as AUDD, has undertaken a pre-seed equity fundraising of $300,000. This funding round values AUDD at $2.7 million, with Novatti retaining a 91% equity interest. The funds were raised from two experienced fintech investors and AUDD management.
The operational success of AUDD is highlighted by its multi-chain strategy and successful launch on Stellar, Ripple XRP Ledger and Ethereum. It is planned to launch on Solana by January 2024.
AUDD has minted more than $4 million of AUD stablecoins across the three current blockchains and currently has a circulating supply of circa $1.5 million. The overall payment volume for AUDD exceeds $5 million, highlighting the appetite for the AUDD stablecoin to be utilised to facilitate funds flow today. AUDD has also integrated with multiple financial services companies to enable contemporary use cases for their clients.
Disclosure: At the time of writing, Australian FinTech Pty Ltd is a shareholder of Novatti Group Limited.
