The Placement will be conducted in two tranches:
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Placement Tranche 1: to issue 50,612,567 under listing rule 7.1 to raise ~A$2.0 million. Placement Tranche 1 will be eligible for the Entitlement Offer.
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Placement Tranche 2: to raise up to an additional A$2.0 million, subject to shareholder approval. Existing major shareholder, Brayter Limited, has committed to ~A$0.7m under Tranche 2.
All Placement allocations will be split across Placement Tranche 1 and Placement Tranche 2, except for Brayter Limited who are committing under Placement Tranche 2.
The company intends to offer existing convertible note holders the ability to convert their note to equity on the same terms as the Placement, subject to shareholder approval.
Attaching Options:
For every 1 New Security subscribed for under the Offer, investors will receive 1 free attaching listed option (pending ASX approval) exercisable at A$0.064 and expiring on 31 December 2027 (“Attaching Option”). Attaching Options are subject to Novatti shareholder approval at the AGM.
Offer Price:
Offer price of A$0.04 per New Security (“Offer Price”).
The Offer Price represents a:
- 31.6% discount to the Company’s last traded price of A$0.0585 on 8 October 2024;
- 39.7% discount to the 5-day VWAP of A$0.0664 as at 8 October 2024; and
- 49.0% discount to the 15-day VWAP of A$0.0785 as at 8 October 2024