Image: Canva.
  • 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 (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 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 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.

You May Also Like

Thinking of borrowing for a new home? We decode the home loan lingo and explore a common mistake

We take a look at everything from principal and interest to rates and more.

Mortgage stress saw a consecutive decrease across Australia despite high interest rates

Australia’s interest rates are currently at an eye-watering 4.35%, but levels of mortgage stress eased throughout November.

NHFIC and CBA unveil new trends and insights into first home buyer market

The analysis found the equity positions of HGS participants appeared to be growing in line with long run averages.

Fixed rate home loans begin to expire, but very few Australians are behind on repayments

Listings numbers are up, but distressed sales are not the primary driver.