Pavilion Insurance has announced that it has placed 9,090,909 new ordinary shares of 1p each at 5.5p per share, raising £470,000 net of expenses.
The company said the net proceeds of the placing would be used to extend its range of insurance products, services and as general working capital for the group.
Pavilion said it expected the application for admission of the new ordinary shares to trading on the alternative investment market would be made on 4 February.
Dealings would commence in the new ordinary shares on 10 February, it said.