Inventis Secures $5.7M Orders and Eyes $3M Equity Sale to Cut Debt

Operational Update and Financial Corrections

Inventis Limited (ASX: IVT) has released an amended Operational Review and Appendix 4C for the quarter ended 31 December 2024, correcting previous errors related to share sale details and financing facilities. These adjustments provide a clearer picture of the company's cash position and funding availability as it navigates a complex growth phase.

The company reported a modest net cash outflow from operating activities of $166,000 for the quarter, with cash and cash equivalents dwindling to $12,000 by quarter-end. However, substantial unused financing facilities totaling $6.55 million provide a buffer, extending the company's estimated funding runway to nearly 40 quarters based on current cash burn rates.

Strong Order Book and Revenue Prospects

Inventis confirmed Opentec orders exceeding $5.7 million expected to settle in Q3 2025, underpinning near-term revenue visibility. The Technology Division saw a remarkable 267% sales increase in December compared to the prior year, although year-to-date sales remain down 30% due to timing of large orders. The pipeline remains robust, with international quotes progressing and new government export funding grants under review.

In the Philippines, the Hazavoid business secured stage 1 orders for Palawan with further stages anticipated, supported by local government units. The company is also advancing an exclusive agency agreement to supply emergency vehicles, targeting a potential $60 million market opportunity.

Capital Raising and Debt Reduction Initiatives

Inventis is actively pursuing capital raises to support its growth ambitions. The US-based Hazavoid Tx LLC is seeking to raise a minimum of $2.5 million USD through a 20% equity placement, aiming to capitalize on a qualified sales pipeline exceeding AUD $3.4 million. Additionally, the company is considering a share sale of 49% equity in Electronic Circuit Designs (ECD) to Ant Software Pty Ltd, potentially raising $3 million to reduce outstanding debt.

Chairman Peter Bobbin highlighted ongoing discussions with venture groups and growth funds, including preliminary interest in an $8-$10 million investment to accelerate the group's international transformation plan.

Strategic Focus on Technology and Cost Efficiency

Inventis continues to streamline operations, having reduced employment costs by $1.375 million over the past two years, with further savings planned through natural attrition and factory relocations. The company is prioritizing technology-driven growth, developing new products such as the Hazavoid mobile app with a subscription revenue model projected to generate up to $4 million annually by 2029.

New distribution agreements in the US Midwest and Eastern Seaboard are expected to enhance revenue streams over the next 12 to 24 months. The company also secured a Platinum Partnership Agreement with a major Australian fire and security organisation, facilitating Hazavoid's introduction into the US market.

Challenges and Outlook

Despite the positive developments, Inventis faces challenges including delayed government tenders impacting its Furniture Division and subdued trading conditions linked to broader economic uncertainties. The company anticipates a recovery in Q3 and Q4 as large orders materialize and pipeline opportunities convert.

Managing Director Anthony Mankarios acknowledged the impact of COVID-19 and other hurdles but expressed confidence in the clearer growth trajectory emerging from international expansion and investor interest.