RS Group placement nets US$8.5 million

A previously announce private equity placement by RS Group of Companies (formerly Rent Shield) has yielded proceeds of US$8.5 million.The company originally intended to raise US$5 million, but the placement was oversubscribed.”Today’s announcement provides RS Group of Companies with the balance sheet strength and working capital necessary for the company to pursue its aggressive business plan,” says CEO John Hamilton. “It also provides the company with the cash needed to complete our previously announced acquisition of Canadian Intermediaries Ltd.”In December 2003, the company announced it would purchase CIL, which specializes in hard to place liability and credit covers, and is a Lloyd’s representative, for $5 million in stock and cash. RS Group expects CIL to add at least $25 million in revenue and $1.75 in EBITDA over the next 12 months.