Manchester-based consolidator completes share placing and new banking facility with RBS.

AIM-listed broker CBG has raised £1.65m after placing 1,375,000 new ordinary shares at a placing price of 120p per share.

In a statement to the London Stock Exchange this morning, CBG said: "CBG Group, the Manchester based insurance broker and financial services specialist, is pleased to announce that today through Zeus Capital, and with Relgaire Hichens, arranged the placing of 1,375,000 new ordinary shares of 4p eachat a price of 120 pence per share raising £1.65 million before expenses, conditional upon admission.

"The proceeds of the placing will be used, together with increased banking facilities recently negotiated with The Royal Bank of Scotland, to expand the business organically and, as opportunities arise, by acquisition for the core business of insurance broking."

It added that an application had been made for the new Ordinary Shares to be admitted to trading on 13 November 2008.

Laurie Turnbull, Chairman of CBG Group, said: "It is testament to our proven successful track record that existing institutional shareholders have taken the opportunity to increase their shareholdings in the Company at a time when there is turmoil in the financial markets.

"Our objective is to increase earnings per share year on year, and a placing of shares at the current time and in this quantity is consistent with this strategy. The resultant funds raised, together with our new banking facilities, provide us with substantial funding resources to enhance and grow our business in line with the Company's model of acquisition, consolidation and organic growth".