Rent.com.au has locked in up to $5.5 million in growth capital by underwriting the exercise of its remaining listed options, positioning the company for accelerated profitability and expansion of its RentBond® loan book.
- Templar Corporate Pty Ltd fully underwrites remaining RNTO options
- Up to $5.5 million in additional growth capital secured
- Funds targeted to reduce borrowing costs and expand RentBond® loans
- Company holds over $9 million in cash plus $5 million undrawn debt
- Underwriting agreement includes standard termination clauses and fees
Underwriting Agreement Secures Growth Capital
Rent.com.au Limited (ASX, RNT), Australia's leading rental platform, has entered into an underwriting agreement with Templar Corporate Pty Ltd to fully underwrite the exercise of its remaining listed options (RNTO Options) exercisable at $0.04 and expiring on 31 December 2025. With approximately 70% of these options already exercised, this agreement ensures the company can raise up to $5.5 million in additional capital.
The underwriting arrangement means that any unexercised options by the expiry date will be subscribed for by Templar, providing Rent.com.au with a guaranteed injection of funds. This capital is earmarked primarily for expanding the RentBond® loan book, a key growth driver for the company, and for reducing borrowing costs.
Strategic Impact on Profitability and Cashflow
CEO Jan Ferreira highlighted that the underwriting deal accelerates Rent.com.au’s path to profitability and positive cashflow. By combining equity capital from the option exercise with debt funding from the Eldium Income Fund, the company aims to lower its overall funding costs. This financial strategy is expected to support cashflow breakeven within the next 12 months.
Rent.com.au currently holds over $9 million in cash, including the proceeds from exercised options and underwriting, alongside $5 million in undrawn debt facilities. This strong liquidity position underpins the company’s confidence in scaling its RentBond® loans and sustaining growth momentum.
Terms and Conditions of the Underwriting Agreement
The underwriting agreement includes fees payable to Templar Corporate, comprising a 2% management fee and a 4% underwriting fee on the underwritten amount, along with unlisted options as part of the compensation. The contract also outlines standard termination events, such as regulatory investigations, material adverse changes, or failure to meet contractual obligations, which could allow the underwriter to withdraw.
Importantly, any shortfall shares issued to the underwriter under this agreement will be issued without requiring shareholder approval and will not count towards the company’s placement capacity under ASX Listing Rules. This facilitates a smoother capital raising process without diluting existing shareholder control beyond the planned option exercises.
Looking Ahead
The timetable for the option expiry and shortfall subscription is set around the end of December 2025 and early January 2026, with the expectation that the new shares will be quoted on the ASX shortly thereafter. Investors will be watching closely to see how fully the options are exercised and how effectively Rent.com.au deploys the fresh capital to drive growth and profitability.
Bottom Line?
With underwriting in place, Rent.com.au is poised to accelerate growth, but execution on RentBond® expansion will be key to sustaining momentum.
Questions in the middle?
- Will all remaining RNTO options be exercised or will there be a significant shortfall?
- How will the increased capital specifically impact the growth rate of RentBond® loans?
- What risks could trigger termination of the underwriting agreement before completion?