Toronto-based Northern Financial Corp. (TSXV:NFC) Tuesday announced a proposed equity offering to shore up the capital position of its brokerage firm subsidiary, Northern Securities Inc.

NFC said that it is proposing to complete an offering of up to $500,000 worth of common shares at a minimum issue price of 1¢ per share. “The proceeds of the offering would be used to satisfy the regulatory risk adjusted capital requirements of Northern’s wholly owned subsidiary Northern Securities,” it says.

The firm anticipates that the financing will close on January 11, and it notes that the completion of the offering is subject to regulatory approval.

Late last year, Northern Securities began transferring its retail accounts and advisors to other firms; and it agreed to limit itself to M&A, corporate finance, and research activities, and to stop sales and advisory services for retail and institutional accounts as part of a deal with regulators. This came after its carrying broker, Penson Financial Services Canada Inc., quit the business and the firm was unable to make alternative arrangements by the end of 2012.