Prime Financial Group has announced an institutional placement with RI Group, with RI taking up new shares worth 15 per cent of Prime. The placement will raise $2,400,000, for paying off debt or for future acquisitions.
The money will be placed into voluntary escrow for six months. The shares will be offered at 12 cents each, a 50 per cent premium on the 30-day volume weighted average price of 8 cents. The placement does not need shareholder approval.
RI is not seeking a representative on the Prime Financial board.
Prime Financial suffered a profit decline of 115 per cent in the previous half year. Prime Financial disclosed debts of $8.22 million in its previous six-month report.
