The Innovation Group (TIG) has confirmed it is considering a rights issue, as tipped by Insurance Times, as chief executive Rob Terry steps down.

TIG announced last night "it is considering raising new funds, via a rights issue, in order to further strengthen the company's balance sheet".

"This will provide additional confidence to potential clients and assist in the negotiation of significant new business currently under discussion," the announcement said.

It said that last month an existing global blue chip customer, thought to be Zurich, paid £1.8m for a new licence contract into escrow to be released subject to an announcement of a rights issue underwritten to a minimum of £5m.

Current TIG chief operating officer Hassan Sadiq will be appointed chief executive following a successful rights issue.

Foundert Rob Terry will become non-executive vice chairman.

He is likely to be on a two-year rolling service contract that enables TIG to use his services on a flexible basis.

John Birkmire and Gordon Crawford, both of whom own a sizable portion of TIG, and Clive Vlotman leave the board with immediate effect.

New, fully independent non-executive directors will be appointed "in due course," the announcement said.

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