5 questions lodged at 2025 Novatti Group hybrid AGM
November 25, 2025
Below is the text of the 5 written questions submitted at the 30 minute Novatti Group (NOV) 11am hybrid in Melbourne and via the Automic platform on November 25, 2025. Market cap $17m on AGM day. See notice of meeting and voting results with four minor protests of 8-10% against director and executive incentive grants. The proxies were not disclosed early in the formal addresses.
Q1. The latest accounts show that we accumulated losses of $107m and negative equity of $879,000, but at least the market is today valuing the equity at $17m so there is hope. As a relatively new shareholder, could the chair briefly summarise where all the money went and what past directors and executives should have done differently to deliver a better experience for long-standing shareholders? The latest quarterly update talks about a $10 million reduction in our cost base. How did our costs get so high in the first place?
Answer: The chair... Watch video of exchange via Twitter.
Q2. In terms of the $11 million in negative cash flow for the 2024-25 year, where did all that money go and has the situation improved such that the board can envisage us having a positive cash flow first half in 2025-26 after the encouraging signs evident in the recent September quarter update?
Answer: The chair... Watch video of exchange via Twitter.
Q3. According to the latest annual report, we have 3,247 shareholders and after the recent placement to WAG, we have 604 million shares on issue. After the stock peaked at almost 80c in 2021, we're now down to 3c. Wouldn't it make sense to propose a 10-for-1 share consolidation at next year's AGM and also launch an unmarketable parcel offer to try and reduce the size of our share register?
Answer: The chair... Watch video of exchange via Twitter.
Q4. In terms of the recent $1m placement at 2.75c to Lee Iafrate's WAG group announced two weeks ago, what is our history with this group and were there any discussions about giving them board representation given they are now a substantial shareholder? Will we even need to use this additional 10% placement capacity after this latest injection of cash or are we still short of cash? Also, why not offer your 3000+ retail shareholders an SPP to raise equity. We don't charge excessive fees either.
Answer: The chair... Watch video of exchange via Twitter.
Q5. The external auditor cited valuing share-based based payments as a key audit matter, which is not something you often see at ASX-listed companies. Could CEO Mark Healy comment as to whether simplifying the whole paying with equity mess at Novatti is something he is focusing on, plus shed some light as to how it became so over-used in the 1st place. Did we just not have enough cash to pay for people & services with cash, which is why we have this options grant to advisers up for the vote today?
Answer: The chair... Watch video of exchange via Twitter.
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