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LONDON (Alliance News) - Tavistock Investments PLC shares rose in early trade on Monday after the group said it has raised GBP1.1 million via a private share placing and unsecured convertible loan facility and as it announced a strategic alliance with Novia Financial PLC.
Tavistock raised a total of GBP340,000 with the issue of 4.5 million shares at 7.5 pence per share, a 50% premium on its closing price on Friday. Shares in the firm briefly topped the AIM All-Share index in opening trade on Monday and were up 12% to 5.6 pence later in the morning.
In addition, the company will receive GBP750,000 via a three-year, unsecured convertible loan facility provided by Novia Financial and Cocoon Investment Holdings Ltd. The financing is to be used for working capital purposes and business development.
Novia and Cocoon also subscribed to GBP250,000, or 74%, of the Tavistock share placing.
Along with the financing facility agreed with Novia, Tavistock separately said the pair have signed a strategic commercial alliance. Under the terms of the agreement, Tavistock Wealth, the discretionary fund management subsidiary of Tavistock, has endorsed Novia as a preferred platform and Novia will introduce advisers to Tavistock on a selective basis.
Tavistock Wealth also will allow Novia-supporting independent financial advisers access to its centralised investment proposition, which is otherwise only available to advisers within the Tavistock Partnership.
"Novia is one of our platforms of choice because it offers market leading functionality that fits well with our processes. Novia has also demonstrated a willingness to work with us for the benefit of our retail clients. We anticipate introducing substantial assets onto the Novia platform as our business expands," said Tavistock Chief Executive Brian Raven.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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