- Rental property website, Rent.com.au (RNT) is set to raise $1.5 million to launch its new Rentpay service
- Rentpay is an app which has been developed to help tenants pay their rent wherever they are, track history and set up reminders
- The company will issue over 33 million shares for 4.5 cents each
- CEO Greg Bader said the Rentpay development is nearly completed with payment systems and banking integrations underway
- On the market this afternoon, Rent is up four per cent and is trading for 5.2 cents per share
Rental property website, Rent.com.au (RNT) to raise $1.5 million to launch Rentpay.
Earlier this week, the company went into a trading halt ahead of this announcement.
Rent will issue over 33 million shares at an issue price of 4.5 cents per share, which is a 10 per cent discount to the last price the company shares were last trading.
In February, the company teamed up with Novatti to create Rentpay. Rentpay is an app to help tenants to pay their rent wherever they are, track the history of past payments and set up reminders for future payments.
"With our existing core Rent.com.au business now profitable, and with RentPay development nearing completion, the placement ensures that we are well placed to drive the next phase of the company’s growth via RentPay,” CEO Greg Bader said.
“Gross proceeds will be applied towards launching Rent.com.au’s flagship “tenancy period” product, RentPay. Significant progress has been made with the majority of RentPay development completed, with payment systems and banking integrations underway and to be completed before user trials commence," he added.
Rent had a strong June quarter, despite the COVID-19 pandemic. Revenue increased by 7 per cent year on year.
The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 60 per cent, compared to this time last year in the fourth quarter. However, it is still in the red, despite the result being Rent's best on record.
On the market this afternoon, Rent is up 4 per cent and is trading for 5.2 cents per share at 1:31 pm AEST.