Source: Ovato
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Ovato (OVT) is set to have its book printing business acquired by Opus Group for $8.5 million
  • Additionally, the company will subscribe for one convertible note subscription agreement under which Opus will gain one convertible note in Ovato with a face value of $2.5 million
  • The conversion price comes to 14 cents per share, with a maturity date of 25 November, 2023
  • The funds raised from both transactions will be applied to the general working capital initiatives of Ovato
  • Ovato is up 13 per cent, trading at 13 cents at market close

Ovato (OVT) is set to have its book printing business acquired by Opus Group for $8.5 million.

Opus is a subsidiary of Left Field Printing Group, which conducts specialist printing and related services across the east coast of Australia.

The contracts involve a business purchase agreement for the sale of Ovato’s book printing business to Opus for $8.5 million.

Additionally, it will subscribe for one convertible note subscription agreement under which Opus has agreed to subscribe for one convertible note in Ovato. This has a face value of $2.5 million.

The conversion price comes to 14 cents per share, with a maturity date of 25 November, 2023.

On conversion of the convertible note into shares, Opus will hold around 14.7 per cent of the issued capital in Ovato.

“This deal provides a refreshed debt profile and a path towards equity and investment from an experienced and respected industry player,” Ovato CEO James Hannan said.

“Further narrowing of Ovato’s focus will only strengthen our ability to continue to deliver quality and efficiency to our valued clients across our packaging, sheetfed and offset printing businesses.”  

The funds raised from both transactions will be applied to the general working capital initiatives of Ovato.

Ovato said it anticipates the business sale and note issue will be complete around June 15.

Ovato was up 13 per cent, trading at 13 cents at market close.

OVT by the numbers
More From The Market Herald
The Market Herald Video

" Dateline Resources (ASX:DTR) releases MRE for Colosseum project, California

Shares in Dateline Resources (ASX:DTR) have spiked in early trade after the company released a fresh…

" ResApp (ASX:RAP) receives FDA clearance for SleepCheckRx

ResApp (ASX:RAP) receives 510(k) clearance from the US Food and Drug Administration (FDA) for its at-home…

" Galileo Mining (ASX:GAL) raises $20.4m to expand drilling at Callisto

Galileo Mining (ASX:GAL) raises $20.4 million for the Callisto palladium-nickel discovery within the Norseman project in…
The Market Herald Video

" Strike Energy (ASX:STX) and Talon Energy (ASX:TPD) to commence flow testing at Walyering-6, WA

Joint venture (JV) partners Strike Energy (ASX:STX) and Talon Energy (ASX:TPD) are gearing up to begin…