Forum Archive Index - September 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

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Yes, more cash is needed and another 27.7 mill. shares is created!

 

Gerry

 

 

 

RMG  RMG Limited

RMG LIMITED                                   2001-09-25  ASX-SIGNAL-G

HOMEX - Melbourne

+++++++++++++++++++++++++
Listed receivables management company, RMG Limited, has announced the
successful completion of a $A5 million capital raising by the issue
of new shares at 18 cents each.

RMG Deputy Chairman and Chief Executive, Mr James Boult, said the
funds were derived from a number of predominantly institutional
investors
 and would be used for distressed debt acquisition, a major
growth area for the company, both now and in the future.

Mr Boult said that some of the capital raising would fund the
purchase of Distressed Debt books totalling $A36.0 million which are
to be settled immediately. The balance of the funds raised would fund
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
signifi
cant reflection of the growing impact we are now making in the
extremely competitive area of receivables and debt management," Mr
Boult said

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.

"This capital raising allows us to move into this specialist field in
a very significant way and in so doing Distressed Debt management
will become a very important part of our ongoing
business.

"Previously, Distressed Debt has only been a small part of our
operations, but we aim to grow the size and importance of this field
and are already negotiating other opportunities in this area.

"RMG is currently undertaking many initiatives to ensure its
profitability and success in the industry and we believe this is yet
another positive step for the future of the company. We would expect
other current negotiations to reflect this view in the coming months.

Mr Boult also noted that RMG's Chairman Mr Tony Hodgson and
non-Executive Director Robin Clements participated in the capital
raising by taking 1.0 million shares and 350,000 shares respectively.