AIM listed fund management group MAM Funds is set to raise up to £20m by placing more than 60m new shares.
MAM intends to place the new ordinary shares, worth 33p per share, in order to pay off outstanding bank debts as well as to appoint new management.
Chairman and chief executive Colin Rutherfood will step down, taking a payout of £350,000 as a reward, as well as board director Adrian Collins.
Ian Dighe will come in as executive chairman whilst former Gartmore fund manager Gervais Williams will become managing director from 1 March.
Speaking yesterday, Colin Rutherford said: “Completion of this successful placing and the debt and preference share repayment will leave MAM Funds debt and covenant free with high quality and supportive shareholders and a strengthened management team.”