Tavistock Investments shareholders have voted unanimously in favour of its acquisition of Standard Financial Group.
The decision was made at a meeting of shareholders on 12 February, held after the proposed buyout of the holding company of advice network Financial Limited was announced last month.
In addition to the £2.7m raised by Tavistock to provide regulatory and working capital through a placing and subscription, the directors of the adviser consolidator have said it has raised an extra £355,856 from its existing shareholders in line with the one-for-four open offer announced last month.
Tavistock has now issued almost 152.8m new ordinary shares of 0.01p each made up of 135m new ordinary shares from the placing and subscription and nearly 17.8m from the open offer.
Application has been made for 274.6m ordinary shares to be admitted to trading on AIM from 13 February.
Brian Raven, chief executive of Tavistock, said approval has been given from the FCA, and the two firms will now work to integrate their operations.
He said: “Tavistock has a robust and scalable business model, with a retirement guarantee and investment proposition that are both attracting considerable interest. We now operate the seventh largest advisory network in the country, and we are well-funded to continue our expansion.”
Background box
The acquisition will create a business with more than 300 financial advisers and 65,000 clients in the UK, with a combined turnover of approximately £30m and an estimated £3bn in assets under advice.
The announcement in January followed the publication of accounts warning of cashflow issues, which revealed Financial Ltd made a £120,481 loss for the financial year of 2014, up from a £28,193 loss the previous year.
