The failure of online fund trading platform EMX to raise £6m in a rights issue has led to six fund managers stepping in and save the company's future development.
Threadneedle, Fidelity, M&G, Scottish Widows, Standard Life and Invesco said they would come to the rescue of the project if it failed to raise £6m through the rights issue The companies will fund the initial investment needed and may be asked to come up with more money.
The rights issue, which was aiming to raise £8.5m, closed on March 28 with EMX refusing to say how short it was of the minimum £6m. The company says £6m is needed to fund it for a year and it is in discussions with a number of providers looking to sign deals.
Threadneedle head of e-business Phil Goffin believes EMX will need £10m over the medium term to develop.
EMX acting chief executive Phil Wise says: “We were not surprised by the result of the rights issue. The initial opinions we received from people is that they want to see EMX succeed but were not willing to take a stake at this time.”
Goffin says: “The six members are very intent on moving EMX forward. We are excited about it fulfilling its place in the marketplace.”