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TORONTO -- RS GROUP OF COMPANIES, INC. (formerly RENT SHIELD CORP.) (OTCBB: RSGC), a provider of pass-through risk specialty insurance and reinsurance products, announced today its acquisition of Canadian Intermediaries Limited ("CIL") has been completed.
Under the terms of the agreement, RS Group of Companies obtained the common stock of CIL for $5 million. The consideration for the stock of CIL was as follows: $2.5 million in cash and $2.5 million in the common stock of RS Group of Companies. The transaction closed April 30, 2004. Now a wholly-owned subsidiary of RS Group of Companies, revenues from CIL will now be included in RSGC`s financial statements. This purchase is expected to add a minimum of $25 million in revenues and $1.75 million in EBITDA for RS Group of Companies over the next 12 months.
CIL has generated gross written premiums in excess of $11 million Canadian for the year to June 30, 2004.
As underwriting manager, CIL represents underwriters specializing in "hard to place" liability, bloodstock mortality and credit insurance in the North American market. "CIL has consistently produced a profitable portfolio and holds an excellent reputation in the North American and London markets," said John Hamilton, CEO of RS Group of Companies, Inc. "This acquisition provides RS Group of Companies with another value-added vertical fit for its pass-through risk specialty insurance and reinsurance products."
RS Group of Companies` core product, the RentShield(TM) Residential Rental Guarantee Program, (http://www.rentshieldexpress.com):
--Guarantees, without question, to automatically pay the landlord up to six months of rental income in the event of tenant default within 30 days of the due date.
--Pays the landlord up to $10,000 for willful damage by a tenant.
--Eliminates the landlord`s legal, eviction, and administrative collection expenses.
--Pre-qualifies a prospective tenant through background and credit verification within 48 hours of their application.
--Eliminates the need for landlords requiring up-front payment of a security deposit and last month`s rent.
--Provides property owners the online tools that help administer residential rental properties and access other RSGC products and services.
--Provides landlords and tenants online access to listings of vacant properties.
About RS Group of Companies, Inc.
RS Group of Companies, Inc. (http://www.rsgc.com) has developed and is implementing a strategy to design, structure and sell a broad series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November 2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution, RentShield (TM) (http://www.rentshieldexpress.com), a Residential Rental Guarantee Program being offered to North America`s $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential property developers and is being used as an extremely effective marketing tool in the United Kingdom for the buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline.
Forward-Looking Statement
Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as "Forward Looking Statements" for purposes of safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward Looking Statements may be identified by words including "anticipate", "await", envision", "foresee", "aim at", "believe", "intends", estimates" including without limitation, those relating to the Company`s future business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the Forward Looking Statements. Readers are directed to the Company`s filings with the U.S. Securities and Exchange Commission for additional information and a presentation of the risks and uncertainties that may affect the Company`s business and results of operations.
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