Nucleus is planning a £15m rights issue to pay back the company’s debt to South African insurer Sanlam.
Nucleus founder and chief executive David Ferguson (pictured) says the fundraising has been discussed informally for the last 18 months and has secured large shareholder support.
It is expected to be completed by the end of this year and will be funded by all existing shareholders.
Nucleus sought to raise over £3m in a similar fundraising exercise in June 2009, again to pay back debt to Sanlam.
The IFA-owned wrap currently has 79 IFA member firms with in excess of £1.9bn of client assets held on the platform.
The news comes ahead of the release of Nucleus’ annual results for the year ending December 31, 2009.
Preliminary figures from the accounts show that the wrap provider made an operating loss in 2009 of £1.88m, but saw a 140 per cent increase in turnover to £2.41m.
Ferguson says: “We narrowed our operating loss, while our overall loss grew slightly principally because of the amount of debt we are carrying.
“Nucleus was originally funded by a combination of equity and debt and now is the time to address that with a cash call to shareholders to restructure the balance sheet.”
He adds: “There is very strong shareholder support for the fundraising and that will mean we have a balance sheet completely consistent with the growth ambitions of the business, carrying zero debt and with sufficient working capital to take the business to the next level.”
Ferguson is expecting the company’s turnover to continue to grow for 2010.