Pan-European retail stock market Jiway is seeking a EUR60 million cash injection, over and above the original EUR100 million pumped in to the troubled venture by joint shareholders OM and Morgan Stanley.
Jiway has been badly hit by the downturn in retail investor confidence. It handled only 2622 trades in April and is hoping that new investors will also provide additional order flow.
Per Larsson, chief executive of OM, comments: "Despite current market conditions, Jiway has created a model that will stand the test of time. We believe that this is the right time to broaden the shareholder base and raise additional capital."
Jiway chairman Lynton Jones says the additional finance will enable it to continue its operations and to develop the business model in several ways. Work is already in progress on a number of initiatives, he says, several of which will require the approval of UK regulatory authorities.
Both OM and Morgan Stanley have have already subscribed a minimum of EUR30 million (under the existing 60/40 split) of the EUR60 million being sought.
In a pointed reference to the rumours that Morgan Stanley and OM were preparing to pull back from Jiway, Jones adds: "We are particularly pleased that our existing shareholders...have agreed to put up 50% of the additional capital that we are now seeking."