The firm is taking this step as part of a bid to cut its cost base and strengthen the company’s balance sheet. The cash booster is also aimed at allowing it to make considerable investment in its people, processes and proposition.
The company is proposing to undertake a share consolidation whereby ordinary shares of GBP0.002 each will be consolidated into new ordinary shares of GBP0.20 each.
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The company is also proposing a reduction of its share premium account.
Ashcourt Rowan CEO Jonathan Polin said that in spite of the internal and external headwinds Ashcourt Rowan has the potential to become one of the leaders in UK wealth management over the next 3-5 years.
"While there is still a great deal of hard work ahead, the capital raising we have announced will provide the best possible platform from which to build on our progress to date, adding significant strength to the balance sheet and allowing for considerable investment in our people, processes and proposition," Polin added.
The proposal, including the shares placing, depends on the final approval by shareholders at its general meeting to be held in December.
