The Innovation Group (TIG) released details of its long-awaited rights issue last week amid speculation that market confidence in the board has eroded.
The software group plans to raise £9.18m from a rights issue, which the board indicated was largely backed by a US investor. But a leading market analyst told Insurance Times that "serious doubts" remain over TIG's ability to fulfil the rights issue.
The company has endured a series of setbacks in recent months, including Royal & SunAlliance's withdrawal from a software deal and worse-than-expected trading figures.
It is understood that company backers may have lost confidence in TIG founder and former chief executive, Rob Terry, and demanded a boardroom shake-up with Hassan Sadiq appointed as the new chief executive.
Terry though denied any shake-up: "Hassan has been chief executive in all but name for the last six months anyway."
Rob Terry has now been placed on a two-year rolling contract with a 200-day notice period.
Meanwhile conflicting comments surround the position of the company's revenue streams.
The signing of the licensing agreement at the end of January 2003 followed research and development work by Zurich with New Planet Solutions (NPS), prior to NPS being acquired by TIG in October 2001.
Sadiq indicated to Insurance Times that TIG was set to focus on new revenue sources.
But Terry suggested that the company was looking to capitalise on the remaining blue-chip clients who were prepared to pay licence fees.