Rent.com.au has has executed an underwriting agreement with Pinnacle Corporate Finance in a bid to raise $2.9 million for the development of RentPay.
The capital raising exercise will comprise a non-renounceable, pro-rata rights issue on the basis of one new share for every five shares held at an issue price of $0.05 per share.
The rights issue price of $0.05 per share represents the last price at which RENT shares traded prior to announcement of capital raising.
Pinnacle will act as priority sub-underwriters for $125,000 of the rights issue, with other major shareholders indicating they would also support the endeavour.
RENT Chief Executive Officer Greg Bader said the capital raising would go towards development of RentPay.
“With our existing RENT core business approaching break-even, the capital raising ensures we build on the strong progress being made with the development of our next generation RentPay product, which we expect will transform the renting industry and the company to the benefit of renters, landlords, agents and shareholders,” Mr Bader said.
“We look forward to updating shareholders on RentPay as we continue to develop our key tenancy period product.”
The indicative timetable for the Rights Issue is as follows: