Identitii Limited (ASX: ID8), a company listed on the ASX, which according to their website provides banking solutions, is facing scrutiny after the Takeovers Panel received an application from Mitchell Asset Management Pty Ltd. The application, lodged by Mitchell Asset Management as trustee for the Mitchell Asset Management Go-Innovation Finance Fund, concerns a non-renounceable rights issue announced by Identitii on December 4, 2025. At this stage, a sitting Panel has not been appointed and no decision has been made whether to conduct proceedings.
The core of the application revolves around Identitii’s offer of 411,506,773 new ordinary shares at $0.007 each, aiming to raise approximately $2,880,547. Mitchell Asset Management contends that the offer, which includes a shortfall facility partially underwritten by Beauvais Capital, is likely to result in unacceptable circumstances. They argue that Beauvais Capital, already holding 29.92% of Identitii’s shares, could substantially increase its stake to a maximum of 49.91% through the offer.
Mitchell Asset Management further claims that the offer price is above the market price, making significant shareholder take-up unlikely. They also allege non-compliance with the Corporations Act regarding foreign shareholders and suggest that Identitii did not adequately consider alternative, non-dilutive funding sources or the applicant’s offer to partially underwrite the rights issue. The applicant also suggests there is no pressing need for capital.
As a result, Mitchell Asset Management is seeking interim orders to restrain Identitii from issuing new shares under the rights issue without Panel approval and requests that subscription funds be held in trust. The applicant is also seeking a final order to terminate the rights issue and underwriting arrangements. Furthermore, they seek to restrict future rights issues without shareholder approval (excluding Beauvais Capital’s vote) and prevent Beauvais Capital from underwriting any share offer or entering into transactions that would increase its voting power.
