RentGuarantor Holdings PLC (AIM:RGG) shares plummeted 43% to 12.89p after the recent AIM arrival said it has conditionally raised £2.5 million through a share subscription to fund expansion and marketing following the recent passage of the Renters’ Rights Act.
The company, which provides a professional rent guarantee service to tenants wishing to rent property in the private rental sector and through local authorities, will issue more than 20 million new shares at 12.5p each, with each accompanied by a warrant allowing investors to buy another share at 17.5p within a year.
The funds will be used to boost awareness of the company’s services through targeted campaigns aimed at students, landlords, local authorities and property agents, as well as to strengthen partnerships with insurers and other industry players.
Chief executive and founder Paul Foy’s Southpaw Ltd vehicle will also sell 2.18 million existing shares at the same price, subject to shareholder approval.
Admission of the new shares to trading on AIM is expected around 28 November, with proceeds also supporting working capital as the business scales.
RentGuarantor moved to the AIM market of the London Stock Exchange in August, making the step from the Aquis Exchange, with trading beginning at around 35p.
The company, which claims to have a network of over 1,700 letting agents, charities, councils and universities, last month reported £1.7 million of revenues for the first nine months of 2025, up from £908,600 a year earlier.
Average revenue per tenant contract rose 5.2% year-on-year to £766 and contract volumes increased 82.9% to 982.
The company added 52 new partners and named broadcaster Rob Rinder, better known to some as Judge Rinder, as brand ambassador.