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Street Talk
Surprise! Novatti taps Shaw and Partners for raisingSarah Thompson, Anthony Macdonald and
Tim BoydJun 26, 2020 – 7.30am
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Small cap fundies were left scratching their heads on Thursday as a good news story turned into a capital raising in a mere matter of hours.
Listed payments processor Novatti has kicked off a capital raising. Jim Rice
ASX-listed payments fintech Novatti announced on Thursday morning it had partnered up with global payments outfit Marqeta to launch Marqeta's prepaid payment cards platform in Australia.
That announcement caused Novatti's share price to jump as much as 8.8 per cent during Thursday's trade before the company entered a trading halt at 1.59pm with its shares sitting at 36¢.
The reason? A capital raising.
Sources told Street Talk Shaw and Partners had been tapped to help oversee a placement that was expected to raise about $7 million.
RELATED QUOTESNOVNovatti Group$0.350.00
1 year1 dayJul 19Oct 19Jan 20Apr 200.000.100.200.300.40
Updated: Jun 26, 2020 – 9.37am. Data is 20 mins delayed.
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It is understood the price of the deal was yet to be determined and Novatti and its broker were talking to investors on Thursday night to figure that out.
In any case, fund managers that bought into Novatti on the back of the good news on Thursday would be kicking themselves, given a big chunk of discounted stock is about to hit the market. (Although no doubt they'll get the chance to average down by buying shares in the raising).
Still, the raising left fund managers wondering – why didn't Novatti just go into a halt on Thursday morning?
The deal is expected to launch on Friday.
