Dorchester Pacific now intends to raise $12 million from investors, after its banks refused to lend it more money.
The lender and insurer will issue convertible notes that can be swapped for stock at 10 cents per share.
Three major shareholders, Hugh Green, the Business Bakery and managing director, Paul Byrnes, will underwrite the issue up to $10 million.
Dorchester had intended to have in place a $10 million facility with its banks to maintain its expansion plans, but the company says the bank wanted more investment from shareholders.
