By Phil Boeyen, ShareChat Business News Editor
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Tuesday 25th September 2001 |
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The company has raised A$5 million by issuing around 27.8 million new shares at A18cents each, mainly to institutional investors.
Deputy chairman and CEO, James Boult, says distressed debt is a major growth area for the company and some of the funds will be applied immediately to purchase A$36 million in distressed debt books. The balance of the funds raised will go towards future acquisitions.
"We are very pleased given that this placement was made quickly in market conditions of extreme difficulty, and I believe this is a significant reflection of the growing impact we are now making in the extremely competitive area of receivables and debt management.
"The current acquisitions are very significant because they represent a move into an area that will now increasingly become a core part of our business."
The new share issue brings RMG's total number of shares to 614.7 million of which around 288 million are held in escrow until at least the end of June next year.
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