My portfolio is definitely "less red" today so far (after a pretty poor couple of weeks for microcaps) - so that can only be a good thing
I just received the following email, and thought it was worth sharing:
Good morning BRETT,
There’s been a lot of news coming out about Novatti Group (ASX: NOV) since we released our Buy recommendation on them in March. While they have been very busy in the news through their recent partnerships with Afterpay and Ripple, there’s a few smaller deals which have been made public, but weren't released by them.
Two of the value drivers assessed in the report have seen significant progress with their banking business securing $18 million which will fund the launch of the neobank.
Although it was not announced via Novatti, their partner Rent.com.au launched the RentPay platform last week which Novatti helped build. Novatti originally had a 2.5% stake in RentPay with an Option to increase their stake to 10% which they chose not to exercise. This appears a shrewd move on face value while Novatti continues to earn payment processing fees through the platform.
The $18m investment in their neobank comes from Hong Kong-based BC Invest and highlights growing attention Novatti is gathering from the Asia-Pacific region. The Company already has a big network of partners through the region and with BC Invest now a strategic partner in the neobank, bringing with them experience that has built up a loan book of more than USD $1.1 billion, we expect more business activity to come from the partnership in coming months.
You might also be interested to see that the Analyst report we released in March was fully translated for distribution in Simplified Chinese which you can view here.
Their banking license remains under review with APRA but the regulator has not provided any feedback to date since resuming the review in March. Our Analyst still views the neobank as a value driver for Novatti by bringing its extensive digital payments services under one banner where the Company already has a wide range of Tier 1 partnership and revenue generating products.
Another of Novatti’s ties, Rewardle made an ASX announcement about the growth of Splitpay, a BNPL platform based in Europe which Novatti is a stakeholder in despite not talking much about their BNPL services outside of their recent Afterpay partnership.
If you’ve got any questions or just want to have a chat about Novatti, feel free to call me on (03) 8080 5777 or reply to this email.
*Directors of Emerald Financial are NOV shareholders and associates of Emerald Financial have been engaged by NOV to assist with investor communications
