TIG in dash for £5m cash

(By Anthony Miller – Thursday 14th May 2009 8:45am). Just a week after announcing its interim results (see TIG – first half ups and downs), insurance software and services player, The Innovation Group, is to make a dash for cash in a £5m placing. The offer, at 8p a share, was marginally above last night’s closing price and has driven TIG’s shares up 11% to 8.5p as I write.

Management past and present are subscribing to the placing. New chairman Andy Roberts (see Andy Roberts takes chair at Innovation Group)will buy £100k’s worth and get another 738k shares, bringing his holding to nearly 2m shares (0.3% of the total). Ex-chairman Geoff Squire is to buy another 2.7m shares, to maintain his holding at 4.3%, the highest on the board.

The placing notice (see here) reports no change in trading conditions since the interims report and seems to be raising the money to support future bids.