Select rejigs rent.com.au deal

07/04/2015 - 14:54

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Select Exploration has brought in a new broking firm to support a $5 million capital raising, ahead of its planned reverse takeover of rent.com.au, after Bailleau Holst backed out of its appointment as joint lead manager.

Select rejigs rent.com.au deal
Mark Woschnak established rent.com.au in 2007.

Select Exploration has brought in a new broking firm to support a $5 million capital raising, ahead of its planned reverse takeover of rent.com.au, after Bailleau Holst backed out of its appointment as joint lead manager.

Select announced today that GMP Securities would be the sole lead manager to the capital raising, with BBY as co-manager.

When the rent.com.au reverse takeover was originally announced last December, Select named Baillieu Holst and GMP Securities as joint lead managers.

Grange Consulting is the corporate adviser to the transaction.

Like many other reverse takeovers, or backdoor listings, the Select transaction has fallen well behind its original timeline.

In December, Select said the notice of meeting would be dispatched in mid-February, and it anticipated the company would relist under the new name of rent.com.au in early April.

Select said today the notice of meeting for its shareholders and the prospectus for the $5 million capital raising would both be completed shortly.

The indicative timetable released today has the company relisting in early June.

Select also provided more details today on its capital structure following the rent.com.au acquisition and a 1-for-33 share consolidation.

The company will have 9.7 million ‘legacy’ shares on issue, and plans to issue 25 million shares under its public offer and a further 53 million shares to the rent.com.au vendors.

In addition, it plans to issue 24 million performance shares to the vendors, plus 13 million performance shares and 37 million options under an ‘employee’ offer.

The advisers and brokers will get a further 7 million options.

The terms for all of these securities will be disclosed in the prospectus.

The proceeds of the capital raising will be used to fund a ramped-up marketing campaign by rent.com.au which was established by Perth entrepreneur Mark Woschnak in 2007.

Mr Woschnak said today rent.com.au had achieved good progress in traffic numbers and new product roll-out, with minimal marketing effort.

The web site attracted a record 230,000 unique visitors in January, and this result was repeated in March.

Business News called Bailleau Holst for comment. 

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