The Innovation Group today launched plans for a £9m rights issue to repair its battered balance sheet.
It is to offer a new share at 5p for each one already held.
The issue is underwritten by KBC Peel Hunt, a broker which specialises in the mid and small-cap market.
TiG's stock rose 5%, or 0.5p, on the news, to 10.25p. The new shares' price is equivalent to a discount of nearly 50%.
TiG also announced a new general insurance license deal worth £1.8m with Zurich Insurance Company. TiG will get the money as long as its shareholders approve the rights issue.
The news comes after a period of dismal results for the company.
It lost £391m before tax in the year to the end of September, spent £24.5m on restructuring and wrote down £350m of goodwill to arrive at a basic loss per share of 202.75p.
