Insured Group has initially raised $25,000 in convertible notes in its capital-raising but hopes this will grow to $2 million before the end of the month, according to Company Secretary Keith Bowker.

“We were planning to raise $1 million, but we have had a call that shareholders may take up to $2 million in notes,” he told insuranceNEWS.com.au.

The notes are fully paid at $1 each and will be issued for 12 months paying 10% a year interest. On maturity the notes will convert into shares listed on the NZ Stock Exchange.

Meanwhile, Mark Shelton has resigned as a non-executive director of Insured Group. The Skywest Airlines CEO has signed a franchise deal with Virgin Blue to operate its regional airline services, and says this will be taking up more of his time in future.

He was a director of Insured Group since listing in April 2010 and prior to that had been a director of Australian Consolidated Insurance since March 2005.