Highlights

  • RentGuarantor announces a conditional GBP 2.54m subscription at 12.5p per share.
  • Funds planned for marketing activities aligned with the Renters’ Rights Act timeline.
  • Secondary sale by Southpaw Ltd includes 2.18m existing shares at 12.5p.

RentGuarantor Holdings PLC (LSE:RGG) has outlined a conditional subscription expected to raise approximately GBP 2.54m through the issue of 20.35m new ordinary shares priced at 12.5p each. Each subscription share will be accompanied by one warrant to acquire an additional ordinary share at an exercise price of 17.5p within a one-year period after issuance.

The subscription remains subject to several conditions, including the receipt of subscription funds, shareholder approval at an upcoming general meeting, and the admission of the subscription shares to trading on AIM.

Expanded Outreach Across Key Stakeholder Groups

The company plans to allocate the net proceeds toward marketing initiatives timed with the implementation of the Renters’ Rights Act, which received Royal Assent on 27 October 2025. Planned initiatives include targeted campaigns directed at students, parents, private landlords, corporate landlords, local authorities, social housing providers, letting agents, Build to Rent operators, later-life rental providers, student accommodation groups, charities, and universities.

Multi-Channel Engagement and Education Programs

Planned activities cover a range of media channels, including digital, broadcast, PR, and partner-driven arrangements. The company also intends to implement both in-person and online educational programmes designed to assist potential partners in understanding rent-guarantee processes. Proceeds will also support the expansion of partner networks, including insurance underwriters, to prepare for anticipated increases in operational volumes. A portion of the funds will contribute to working-capital needs as the business progresses.

Details of Warrant Structure

Each warrant will entitle the holder to acquire one ordinary share at 17.5p. An accelerator clause allows the company to issue a notice requiring warrant holders to exercise their warrants if the closing mid-market share price reaches 35p or above for 14 consecutive trading days. After notice is issued, unexercised warrants will expire after seven days. Warrants will not be transferable without company consent and will not be admitted to trading on any exchange.

Admission Timeline and Voting Rights

The required resolutions include authority to issue the subscription shares, authority to issue warrants and underlying shares, and the disapplication of pre-emption rights. A circular with meeting details will be distributed to shareholders. Admission of the subscription shares to AIM is expected on or around 28 November 2025, with a long-stop date of 11 December 2025.

Secondary Sale by Southpaw Ltd

Southpaw Ltd, controlled by the company’s CEO and founder, has agreed to a conditional sale of 2.18m existing shares at 12.5p. Completion will depend on shareholder approvals, any required regulatory or tax consents, and the admission of subscription shares to trading on AIM. A further update will be issued following the general meeting.

Share Performance of RGG

RGG shares were trading at 38.89% lower to GBX 13.75  per share at the time of writing on 7 November 2025.