Ashcourt Rowan has announced its plans for capital raising and expects to confirm the injection of £8.5 million into the business after the General Meeting of shareholders on the 2 December 2011. The Group will seek approval on the Placement of 8.5 million New Ordinary Shares at a Placing Price of 100 pence per New Ordinary Share.
The Group anticipates that this Placement will raise gross proceeds of £8.5 million from which they intend to:
• Strengthen the balance sheet of the Company and improve its regulatory capital position
• Develop a "best of breed" investment management proposition
• Establish a common operating platform which is scalable
• Complete our planned programme of cost reductions
• Formalise arrangements in relation to certain assets managed under the Savoy brand
The money will be raised from new and existing shareholders, who believe that under the strategic direction from new Group CEO Jonathan Polin, Ashcourt Rowan is well placed to become a leading player in the Wealth Management arena over the next 3-5 years.
Jonathan Polin commented:
“I am delighted to confirm that our conversations with Shareholders regarding these proposals have been positive and we continue to have their backing. In these current market conditions to have raised £8.5m of new equity and be oversubscribed is a testament of the faith that shareholders and prospective shareholders have in the company, our strategy and ability to execute that strategy.”
“We now have clarity on our route, financial security, and the ability and will to grow a first class business.”