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- Commercial printing company Ovato (OVT) has entered a trading halt pending an announcement regarding a pro-rata renounceable entitlement offer
- The company will remain in the halt until December 4 or when an announcement is made, whichever occurs first
- Yesterday, Ovato launched a conditional and partially underwritten pro-rata entitlement offer to raise $40 million
- The entitlement offer forms part of Ovato’s restructure and recapitalisation that was announced in mid-November
- The company will use the funds to provide liquidity, repay debt, and undertake operational activities
- Shares in Ovato last traded for 1.5 cents on December 1
Ovato (OVT) has entered a trading halt pending an announcement regarding a pro-rata renounceable entitlement offer.
The commercial printing company will remain in the halt until December 4 or when an announcement is made, whichever occurs first.
Yesterday, Ovato launched a conditional and partially underwritten pro-rata entitlement offer to raise $40 million.
Existing shareholders will receive 10.93 new fully paid ordinary shares for every one held and 0.5 cents.
The entitlement offer forms part of Ovato’s restructure and recapitalisation that was announced in mid-November.
The company will use the funds to provide liquidity, repay debt, and undertake operational activities.
Looking at its financials, Ovato burnt through more than $1.18 million with the majority going towards product manufacturing and operating costs, and staff, administration and corporate costs.
As of September 30, the company had more than $43 million left in the bank. Coupled with its cash outflows, OVT has enough capital to support operations for 37 more quarters if spending levels remain the same.
Shares in Ovato last traded for 1.5 cents on December 1.
