At a time when the developed world is moving towards a cashless society, tech company Vortiv (ASX: VOR) has identified a unique opportunity to monetise old ATM networks which includes their value as surveillance tools over the Indian population.
Since announcing the buyout of their joint venture partner in Transaction Solutions International (TSI India), Vortiv expects the ATM business to deliver FY22 EBITDA between $9.5 – $10.5 million.
Vortiv currently has an Entitlement Offer open to eligible shareholders seeking to raise $10.5 million at an Offer Price of $0.03 per New Share, of which $4.1 million will be used to acquire 65.11% of TSI India, effectively a backdoor IPO.
Founded in 2005, TSI India owns and services 14,000 ATMs in India which provide traditional cash withdrawal services, but is also the only ATM provider in India with an in-house electronic surveillance offering. This provides data feeds with live monitoring across the populous nation while its cash services are linked to 14 major banks.
Included in their market update, Vortiv confirmed that TSI has been short listed for several new ATM contracts.
For the 6 months ended 30 September 2021, Vortiv reported $31k in revenue which delivered $395k net loss after tax.
The Entitlement Offer to eligible shareholders closes on Friday, 14 January.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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