LONDON (ShareCast) - Tavistock Investments announced a strategic partnership with Novia, as part of which they have agreed a loan of £750,000.

The company also said it will take part in a placing to raise £340,000, in a move that chief executive Brian Raven believes will help establish Tavistock as a "significant financial services company".

Novia and Cocoon have agreed to provide Tavistock with a three-year, unsecured, convertible loan of £750,000 for business development and working capital purposes. The interest will be paid quarterly until August 2017. The lenders also invested in the subscription with a combined sum of £250,000.

Tavistock Partners, the company's advisory subsidiary, has been working with Novia in the past and its clients' assets are currently managed on the Novia platform.

Under the agreement, Tavistock Wealth will endorse Novia as a preferred platform and Novia will introduce advisers to Tavistock.

The Tavistock subsidiary will grant Novia supporting independent financial advisers' access to its capital improvement plan, which is only available to advisers within the Tavistock Partnership.

The company placed 4.5m new shares at a price of 7.5p, a 50% premium to the closing mid-market share price on 29 August.

Raven said it plans to introduce "substantial assets onto the Novia platform" as the business expands.

Shares rose 20% to 6p on Friday at 11:11.

JF

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