Nucleus looks to clear debt through rights issue

  • Story by: Dominic Welling
  • Magazine: InvestmentAdviser
  • Published Monday , June 29, 2009

Nucleus is planing a rights issue to raise approximately £3m to clear its debt to Sanlam, the South African insurer, and the firm's biggest shareholder.

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The company said the decision to initiate a rights issue was purely about "capital restructuring" and nothing more.

Nucleus also said the decision was unrelated to the recent departure of Philip Martin, one of the founders of the company.

A spokesperson for the company said: "This is not related to the Philip Martin issue - the two things are completely unrelated. The rights issue is all about restructuring the capital position.

"The fact is, Nucleus is a three-year-old, growing company and just wanted to pay off some of the debt. The company and business as a whole is in good shape."

David Ferguson, chief executive, said: "Most of the initiative for doing this has come from the existing shareholders, which includes the IFAs who are shareholders in the business, and we just want to be in a more mature position."

He said the process of launching the rights issue would begin as soon as possible.

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