Specific Issues Investigated by the ASX Regarding Ovanti’s...

Specific Issues Investigated by the ASX Regarding Ovanti’s Financial Forecasts

The ASX is investigating several specific issues related to Ovanti Limited’s financial forecasts and disclosures:

• Incomplete Financial Disclosures: The ASX has queried Ovanti for providing incomplete information in its financial disclosures, particularly regarding its financial forecasts and the basis for those forecasts1.

• Reasonable Basis for Forecasts: Ovanti’s directors have stated they do not have a reasonable basis to forecast future earnings due to the inherent uncertainty of the company’s operations. The ASX is seeking clarification on why Ovanti believes it cannot provide reliable financial forecasts or projections, and whether any such information previously provided was adequately substantiated4.

• Disclosure of Risks and Uncertainties: The ASX is examining whether Ovanti has properly disclosed the risks, uncertainties, and assumptions underlying any forward-looking statements, as required by regulatory guidelines4.

• Integrity of Reporting: The ASX is reviewing the integrity of Ovanti’s financial reporting framework and controls, especially after the company replaced its auditors and undertook a comprehensive review of its financial controls following earlier issues that led to a trading suspension4.

• Clarification of Announcements: The ASX has requested Ovanti to clarify statements made in its public announcements, including any extracts or references to prospective financial forecasts in its plans or market communications8.

In summary, the ASX’s investigation centers on whether Ovanti’s financial forecasts were properly substantiated, clearly disclosed, and compliant with regulatory requirements, as well as whether the company’s internal controls and reporting frameworks are adequate and transparent