Investorfirst chairman Otto Buttula and one of the company's senior non-executives has quit the firm less than a week after announcing plans to explore funding options.
The board of the listed company informed the market of Buttula and Robert Bishop's resignations on Wednesday evening.
"The board of Investorfirst advises that Mr Otto Buttula and Mr Robert Bishop have resigned as a chairman and non-executive director respectively of the company," the company said in a statement.
"Both Mr Buttula and Mr Bishop will stand down from their respective duties effective immediately.
"The board wishes to thank both Mr Buttula and Mr Bishop for their service to the company."
Company deputy non-executive chairman Jason Entwistle will assume the role as interim chairman, the statement said.
Neither Entwistle nor Buttula were available for comment when contacted by InvestorDaily.
Buttula's resignation comes five days after Investorfirst announced it would seek to raise $10.3 million through a rights offer as well as explore funding talks with third party entities.
On 20 July, the listed financial services firm presented existing shareholders with a one-for-one non-renounceable rights offer.
At the time, the Investorfirst board also announced plans to further explore an unsolicited, highly conditional, non-binding and incomplete proposal from an unrelated third party regarding "an alternative funding initiative".
The proposed share offer is a result of continued poor markets and subsequent poor performance of the listed company, Buttula said in a statement to the Australian Securities Exchange (ASX) at the time.
"As previously indicated, Investorfirst continues to record operating losses and this continued during the second half of the 2012 financial year," Buttula said.
"Whilst operating results have exhibited improvement from increased revenue flows in line with statements made in the company's half year results released to ASX in February these have not been sufficient to continue to fully fund the business through to eventual profitability."
The funds raised under the offer will be used to assist key business development and working capital purposes over the course of the next 12 to 24 months, the company said.
Specifically, the company will inject funds into the HUB24 investment platform for software and product development.
Since making its rights and funding announcement, the Investorfirst share price has been hit heavily, closing minus 16.13 per cent down at 26 cents on 20 July and continuing to taking further knocks. The company's share price stood at 16 cents at the close of the markets yesterday, a drop of minus 20 per cent.
Buttula and Bishop's departure comes two months after former Investorfirst chief also resigned.
In April, Darren Pettiona left his post as company chief and executive with HUB24.
At the time, Buttula told InvestorDaily Pettiona's decision to leave centred on wanting to ensure the company's new chief executive, David Spessot, and his management team had a "clear run".
In August 2008, Buttula was named the new executive chairman of Investorfirst, formerly Findlay Securities.
The position was his first since leaving the financial services spotlight following the sale of IWL to Commonwealth Bank of Australia for more than $370 million in 2007.
