RENT.COM.AU LIMITED — Capital/Financing Update 2016

Oct 25, 2016

ASX Announcement

26 October 2016

RENT.COM.AU ANNOUNCES STRONGLY SUPPORTED CAPITAL RAISING

Rent.com.au Limited (ASX: RNT ) ( “RENT” or “the Company” ), Australia’s Number 1 website dedicated to rental property, has completed a strongly supported capital raising of $5.0 million (“ the Capital Raising ”), with excess demand for both the Rights Issue sub-underwriting and Placement components of the Capital Raising.

Key Highlights:

• Heavily oversubscribed demand under Rights Issue and Placement;

• $5 million (before costs) raised;

• Accelerates commercialisation; and

• Follows launch of Renter Resume and other site enhancements.

The Company has raised $3.7 million (before costs) via a fully underwritten, non-renounceable pro rata offer (“ the Rights Issue ”) of up to 37,197,542 shares at an issue price of $0.10 per share. The Rights Issue provides existing shareholders with an opportunity to maintain or grow their investment in RENT by allowing shareholders to acquire 1 additional share for every 4 existing shares they hold at 31 October 2016.

In addition, the Company has successfully completed the placement of 13,000,000 shares (“ the Placement ”) with institutional and sophisticated investors under its Listing Rule 7.1 placement capacity. The Placement was also completed at an issue price of $0.10 per share, raising $1.3 million (before costs).

The funds raised via the Capital Raising will be used to help accelerate commercialisation and the development of key customer products and other innovations similar to the recently released Renter Resume and Walk Score®.

RENT Chief Executive Officer, Greg Bader, said he was delighted with the strong ongoing support from institutional and sophisticated investors which was reflected in the high level of demand for participation in the Capital Raising.

“In addition to the $5 million raised under the Capital Raising, we have a further $2.6 million in the bank as at 30 September 2016, providing a strong financial base for growth,” Mr Bader said.

“Our revenue, while still low relative to what we believe can be achieved in the medium term, continues to grow. In addition, we’ve significantly repositioned our cost base with more customer, product and development staff within a team that has been reduced overall as we move into the next phase of commercialisation. This provides for greater operating flexibility and reduced cash burn relative to previous quarters. Based on our internal forecasts, we’re expecting to reach our break-even point during FY2018.”

The Capital Raising follows the recent launch of two new innovations which leverage RENT’s logical stance as the renter advocate. RENT’s relentless focus is to strengthen its market position and offering to its large and unique renter audience.

“We introduced Renter Resume, a personal renting profile feature, which allows for the automatic generation of property enquiries and applications,” said Mr Bader. “With a focus on simplicity and ease of use, customers only need to fill in their details once to produce a standout Renter Resume. It’s just like a job resume.

“Our customers told us they want to be recognised as a good renter, so we’ve built different sections into Renter Resume to help them demonstrate their solid tenancy potential through landlord or agent

endorsements, ID or tenancy checks (RentCheck), known financial relationships and 3[rd] party endorsements.

“The early indicators are promising, in less than a week since launch, we’ve already had more than 2,700 renters create a Renter Resume”.

RENT also announced its partnership with Walk Score®, a tool which promotes walkable neighbourhoods, in a bid to empower Australian renters to make informed property choices. Walk Score® will feature on every Rent.com.au listing and display a walkability score, a Transit Score and commute times. “As the country’s population grows and cities become congested, easy access for errands without total dependency on a car becomes a decision factor for many people,” Mr Bader said. “In fact, we are seeing more properties with limited or even no parking being advertised, so Walk Score becomes a valuable guide.

“Features such as Renter Resume and Walk Score have been developed as a direct result of what Renters have told us they want. These two features are the start of many innovations to come, designed to make the entire renting process easier and friendlier for all involved. The funds raised via the Capital Raising will help us accelerate this development which we see as the key to commercialisation.”

RIGHTS ISSUE SUMMARY AND PROPOSED TIMETABLE

Shareholders of the Company as at the Record Date of 31 October 2016 will be eligible to acquire 1 additional share for every 4 shares they hold at the Record Date, with acceptance forms to be returned by the Closing Date of 11 November 2016. The issue price of $0.10 per share represents a 20% discount to the 10-day Volume Weighted Average Price (“ VWAP ”).

the 10-day Volume Weighted Average Price (“VWAP”).
Lodgement of Appendix 3B and s708AA notice	26 October 2016
Notice to Shareholders	27 October 2016
Existing Shares quoted on an "ex" basis	28 October 2016
Record Date	31 October 2016
Allotment of Placement shares	2 November 2016
Closing Date	11 November 2016
Securities quoted on a deferred settlement basis	14 November 2016
Company to notify ASX of under subscriptions (if any)	16 November 2016
Anticipated date for the issue of the Shares and security holder statements	19 November 2016

Grange Capital Partners Pty Ltd are the lead manager and underwriter of the Offer.

ENDS

Further information: John Gardner, Citadel-MAGNUS +61 8 6160 4900

ABOUT RENT.COM.AU

Rent.com.au is the only national web portal in Australia that focuses solely on the growing rental property market, Rent.com.au was established in 2007 with a mission to connect renters with rental properties from both property agents and non-agent private landlords, creating the complete rental marketplace and providing tailored products and services to make the entire renting process easier and respond to the increasing needs of renters, as growing numbers of Australians choose renting as a conscious lifestyle and investment choice.