Claims management services provider Resources In Insurance Group has raised £295,000 from a placing at 0.4p a share and Bluehone AIM VCT2 has converted a £100,000 loan into shares.
This cash will provide the working capital that the company needs. New business is due to start early in 2011.
The loan is convertible at 0.52p a share. Bluehone has increased its stake to 17.9% after also subscribing for £50,000 of shares. Robert Mitchell of Bluehone is on the RIIG board.
Bob Mortonís Hawk Investment subscribed for 45m shares at a cost of £180,000, which was the majority of the subscription.
After taking up share options, executive chairman John French owns 2.72% of RIIG and non-executive director Barry Whyte holds 8.2%.
Gordon Vater has been promoted from operations director to managing director.
Nominated adviser Allenby has been appointed joint broker alongside Rivington Street.
At 0.5p a share, RIIG is valued at £1.4m.
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