Proposed Issue of Convertible Loan Notes

RentGuarantor Holdings PLC

18 November 2024

 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

18 November 2024

RentGuarantor Holdings PLC

(the "Company" or "RentGuarantor")

Proposed Issue of Convertible Loan Notes

RentGuarantor (AQSE: RGG), a provider of rent guarantee services to prospective tenants across the socio-economic spectrum wishing to rent property in the UK private rental sector, is pleased to announce that it continues to enjoy strong growth in 2024 and has won several major contracts that will continue to see the business grow during 2025.

RentGuarantor is pleased to announce the Company's proposed offering of up to £500,000 10% coupon unsecured convertible loan notes ("Convertible Loan Notes").

It is anticipated that the Convertible Loan Notes will be issued on the following principal terms:

·	The Convertible Loan Notes to carry a coupon of 10% per annum and interest to be paid yearly
·	The Company to be able to convert the principal sum into fully paid Ordinary Shares at the lower of the share price of the Ordinary Shares of the Company on the day falling 10 business days after the service of a conversion notice (the "Conversion Date") and the average price of the Ordinary Shares traded on the Aquis Stock Exchange (or other applicable stock exchange) when calculated across the sixty consecutive days prior to the Conversion Date
·	The Convertible Loan Notes, if not converted, to be redeemable after 2 years

 

The Board of RentGuarantor is proposing to use the proceeds to accelerate growth of the business during 2025. Specifically, the funds are expected to be used to expand the workforce to meet the increased demand for professional rent guarantor services.

To register your interest in the proposed issue of Convertible Loan Notes, email [e-mail]

Record Performance and Target Achievement

Throughout 2024, RentGuarantor has exceeded its target for new users, letting agents, and landlord clients. Specifically, it has grown its user base beyond 25,000 new users per month and expanded its professional rent guarantor services to over 1,100 letting agents in the UK.

This strong performance reflects the Company's continued investment in business development and strategic partnerships, as well as its dedication to providing solutions that meet the evolving needs of tenants, landlords, and letting agents alike.

Demand Driven by Regulatory Changes

With the upcoming Renters' Rights Bill expected to introduce new legislative requirements for the rental market, RentGuarantor anticipates further demand for its professional rent guarantor services. These regulatory changes are likely to drive increased demand, as both tenants and landlords seek secure and compliant rental solutions in an increasingly complex regulatory environment.

Outlook for 2025

With a solid pipeline of partnerships and continued business development efforts, along with the additional capital raised from the proposed Convertible Loan Notes, RentGuarantor is expected to be well-positioned to accelerate its growth in 2025.

Paul Foy, CEO of RentGuarantor, said: "Our performance in 2024 has set a solid foundation for future growth. With the increasing demand for professional guarantor services in the UK, RentGuarantor is well-positioned to become a leading provider in the market in 2025."

Ends

For further information please contact: 

RentGuarantor Holdings PLC

Paul Foy, Chief Executive Officer                                                                                          

[phone] 

Alfred Henry Corporate Finance Limited (AQSE Corporate Adviser)

Nick Michaels

Maya Klein Wassink                                                                                                               

[phone]

Zeus (Joint Broker)

Simon Johnson (Corporate Broking)

James Hornigold (Investment Banking)

[phone]

Oberon Capital (Joint Broker)

Mike Seabrook

Nick Lovering

[phone]

BlytheRay (Financial PR)

Tim Blythe

 Megan Ray

[phone]

About RentGuarantor

RentGuarantor provides a rent guarantee service to tenants wishing to rent property in the UK from the Private Rental Sector ("PRS"). It is an online service where applications are managed on a secure and bespoke digital platform designed and built by the Company. The goal is to make the process as simple as possible, with applications only taking a few minutes and RentGuarantor completing the application on the same day.

RentGuarantor supplies its service to the whole of the market - students, both from the UK and overseas, employed people and people on benefits including Universal Credit, ensuring that everyone has the opportunity to live in their dream rental home.

 

END