Rent Shield Corp. Announces Letter of Intent to Acquire Lloyd's of London Coverholder Which is Expected to Add in Excess of $25 Million in Revenues in 2004.Business Editors TORONTO--(BUSINESS WIRE)--Dec. 9, 2003 RENT SHIELD CORP. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : RSHL), a provider of pass-through risk specialty insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. products, announced today that it has signed a letter of intent to purchase the assets of Canadian Intermediaries Limited of Toronto, Canada. Under the terms of the agreement, Rent Shield will acquire the assets and all rights of CIL (Common Intermediate Language) The ECMA version of the Microsoft Intermediate Language (MSIL). See CLI. 1. (project) CIL - Component Integration Laboratories. 2. (language) CIL - Common Intermediate Language. for $5 million in a combination of stock and cash. The acquisition is expected to add a minimum of $25 million in revenues and $1.75 million in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for Rent Shield in 2004. Canadian Intermediaries Limited ("CIL") has been owned since 1995 by Stephen Stonhill, its major shareholder, who also currently serves as Chairman of Rent Shield. The Company specializes in "hard-to-place" Liability Insurance and Credit Insurance in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Market and is an established and respected Coverholder representing Underwriters at Lloyd's of London Not to be confused with Lloyds Bank or Lloyd's Register. Lloyd's of London is a British insurance market. It serves as a meeting place where multiple financial backers or “members”, whether individuals (traditionally known as . CIL is expected to record in 2003 in excess of $17 million in revenues from approximately $1.75 Billion aggregate underwriting limits, and produce $1 million in EBITDA. Commenting on the announcement, John Hamilton John Hamilton may refer to:
Stephen Stonhill, principal shareholder in CIL and Chairman of Rent Shield, commented, "The acquisition of CIL should be an ideal vertical fit for the Rent Shield business model as we continue to expand our offerings of pass-through risk specialty insurance and reinsurance products. We plan on continuing to make strategic acquisitions that will complement our organic growth." About Rent Shield Corp. Rent Shield Corp. (http://www.rentshieldcorp.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. Through it's wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , the Company plans to introduce in November 2003 its core pass-through risk solution, Rent Shield(TM) (http://www.rentshieldexpress.com), a residential rental guarantee program to be offered to North America's $300 billion residential real estate rental market. The product will be marketed to a majority of landlords in North America, essentially taking the financial risk out of property management. 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. Rental guarantee will provide total peace of mind to landlords and tenants alike. Forward-Looking Statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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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