Insured Group’s $2.25 million capital-raising will now close on August 20 with new shares to be allocated to investors on August 27.

The new closing date for the capital-raising is noted in a second prospectus lodged with the Australian Securities and Investments Commission (ASIC).

ASIC blocked the company’s first prospectus late last month for undisclosed reasons.

The WA broking firm has also entered into a standby equity subscription agreement with Fortrend Securities to raise up to $5 million.

The agreement will see Insured Group issue drawdown notices that will require Fortrend to subscribe for new shares in the broker.

The facility will run for three years from the date of the first drawdown, and the price of the new shares will be at a 10% discount to the average trading price.

For every four new shares issued, an option will be issued that will be exercisable during a three-year period.

The company has confirmed it still plans to delist from the New Zealand Stock Exchange (NZX) and will apply on August 30 for a listing on Australian Securities Exchange (ASX).

It cites the low volumes of trade on the NZX and its small presence in the New Zealand insurance market.

Insured Group also expects market compliance costs to be lower on the ASX, after two serious breaches of the NZX listing rules in the past two years.

“The board and company secretary have more experience dealing with the [ASX] listing rules,” Insured Group says in the prospectus.

The capital-raising will be used to cover the costs of listing on the ASX, and any remaining funds will be used to pay down Insured Group’s debt.

According to the prospectus, Insured Group’s borrowings now stand at $3 million, with $4.3 million having been repaid during the past six months.