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  • Opened to sophisticated investors, expecting to raise $2M
  • Oversubscribed, to $2.5M, at a price of 6 cents per share
  • Funds to go towards marketing and product development

Rent.com.au (ASX: RNT) recently announced an oversubscribed round of funding.

The company said it received binding commitments to raise $2.5 million before costs, via the issue of 41,666,667 new fully paid ordinary shares at an issue price of 6 cents per share to sophisticated, professional and other exempt investors.

The 6 cent price represents a 1.6% discount to the 6.1 cent price at which the company’s shares traded prior to the announcement of the placement.

The funds raised will go towards RNT’s RentPay product. It will increase marketing directly into the product, marketing in the core rent.com.au business, and further develop the company’s product.

CEO Greg Bader said the company originally set out to raise $2 million.

“To be supported by our larger existing shareholders is fantastic… The funds raised via the Placement support our mission of making renting rewarding,” said Mr Bader.

It is anticipated that the Placement Shares will be allotted on Thursday, 20 January 2022.

In December last year, RNT also announced progress for its RentPay product, the company signed an agreement with Rental Management Australia (RMA).

Under the agreement, RentPay will provide RMA with communications and marketing collateral for RentPay and train RMA’s property managers in the key product features.

RNT also said RMA will benefit from premium listings on the rent.com.au portal to generate a greater reach and audience for its vacant properties. Communication with and assistance in the onboarding of RMA’s tenants will also be handled by RentPay.

RNT opened trading at 6.7 cents this morning and at the time of writing was trading at 7.7 cents.

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