- Technology company, Inventis (IVT) has updated the market on how the coronavirus (COVID-19) is impacting the business
- Inventis senior management, including the Managing Director, is taking a 20 per cent pay cut from their salary for the current month to help business
- The company will also postpone all new and unplanned expenditure projects
- Inventis has received an expression of interest from underwriters to secure a minimum $3 million of convertible notes
- This will be used to pay current debt and reduce interest bills
- Additionally, the Australian Government has issued a total of $17.5 billion health and economic relief package
- Inventis is in the grey on market close, with last trade at 0.5¢ apiece
Technology company, Inventis (IVT) has updated the market on how the coronavirus (COVID-19) is impacting the business.
The company said it is following guidelines and procedures set out by the World Health Organisation and the Australian Government.
Staff are being encouraged to take paid and long service leave during April.
Inventis' senior management, including Managing Director Anthony Mankarios, is taking a 20 per cent pay cut from their salary for the current month to help the business. This will be reviewed in April.
COVID-19 impact on second half of 2020 performance
While it is too early to determine the exact extent of the overall economic impact of COVID-19, the company plans to stay on top of its effect on the business.
"Inventis is managing the situation according to the most recent and foreseeable likely scenarios," the company said.
In certain areas of the business, the first-quarter revenue is impacted by an excess of 25 per cent. Management is actively seeking to bring expenses in line with these revenues at this time. The company said it sees promising results to this plan so far.
Additionally, it will postpone all new expenditure projects.
Inventis is considering a current proposal to introduce an underwritten convertible notes issue. Further details will be released to the market by the end of April.
The company has an expression of interest from underwriters to secure a minimum $3 million of convertible notes pro-rata issue offering a fully franked dividend yield of between 6.5 to 7 per cent per annum.
These funds will be used to pay down current debt and reduce interest bills. This is expected to increase net equity in the company.
Inventis has a substantial pipeline in place including a number of international opportunities. With worldwide flight and travel restrictions, the timing of the pipeline will be impacted.
The company has a number of important patents, which are getting ready to be lodged. These include, Smart Chair and a new Automated Track Worker System (ATWS).
"We have received expressions of interest from overseas supply partners for the ATWS, which could potentially earn the company multimillions dollar sales through local and international sales channels into FY2021 and beyond," the company said.
"The timeline for these R&D projects will depend on the current economic conditions being stabilised," it added.
The Australian Government has issued a total of $17.5 billion health and economic relief package. The Government has also said it will support Australian made manufacturers.
This will assist Inventis, but it's difficult to determine the impact of these measures.
Inventis is in the grey on market close, with last trade at 0.5¢ apiece.