News: Site Group to raise funds for acquisition

Site Group International (ASX:SIT) has entered into a binding agreement to raise $5.1 million via a placement of 30 million shares at $0.17 per share to Milford Funds Limited.

SIT specialises in traffic management services.

The funds raised together with Site’s existing reserves will be utilised to fund the cash consideration of the Captain Cook Acquisition expected to be complete by 30 June, and provide ongoing working capital during the company’s continued growth phase and integration of business development opportunities.

Captain Cook College is a Brisbane based Registered Training Organisation that delivers a range of courses in Business, Management, Project Management and Information Technology.

These programs are at a Diploma and Advanced Diploma level and are mainly delivered through the Federal Government VET FEE-HELP program.

Captain Cook College currently delivers these programs from three locations in Brisbane and one location in Sydney.

The company was established in 1998 and has experienced substantial growth in the last three years. This growth is expected to continue with calendar year 2014 forecast to achieve EBIT of around $5.7 million.

The company last traded at $0.17 and is capitalised at $65 million.