Rent.com.au (ASX:RNT) is raising AU$1.7 million via a non-renounceable, pro-rata, underwritten entitlement issue, according to a Friday filing with the Australian bourse.

The offer is being made on the basis of one new share for every eight shares held as of March 26 at an issue price of AU$0.018, resulting in the issue of up to 94.8 new fully paid ordinary shares. The issue has one free attaching option for every two shares subscribed, exercisable at AU$0.04 and expiring on Dec. 31.

The issue is fully underwritten by RM Corporate Finance. Rent.com.au's directors and key management personnel either committed to taking up their entitlements or entered into sub-underwriting agreements totaling AU$270,000, per the filing.

The company will run a shortfall among eligible shareholders in priority to the underwriters and sub-underwriters, the filing stated. The offer will open on March 28 and conclude on April 14.

Proceeds will be used to further develop the company's RentBond product amid rising demand.

Rent.com.au's shares were down 10% in recent trade.