AFH Financial has raised £1.6 million to fund acquisitions.

The financial advisory and discretionary wealth firm told the market it had received commitments to subscribe for a total 1,157,854 shares of 10p in the company at a price of 140p per share.  

'The proceeds of the Subscription, amounting to GBP 1.62 million (before expenses), will be used to provide additional working capital for the company and to finance potential future acquisitions,' the company said in its statement.

In February Bromsgrove-based AFH said it would be moving from the ISDX Growth Market to the AIM market on the view the latter will provide the firm with better growth opportunities.

At the time chief executive Alan Hudson (pictured) said: 'We believe that given the fundamentals of the business and the nature of  the  IFA market, the time has come for a move to AIM.  

‘The increased profile will assist the company in its aim to expand through strategic acquisitions and organic growth.'

AFH employs more than a 100 wealth advisers and provides an discretionary investment management service controlled by a team of 20 investment managers.

In January the firm acquired Stoke-on-Trent-based SR Wealth Management for around £200,000, its 20th acquisition since it listed on the ISDX in 2011.