News | Business
26 Feb 2018 12:33
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    ERoad looks to raise $6 million

    ERoad has opened a share purchase plan for existing shareholders, which it hopes will raise $6 million in capital.

    ERoad has opened a share purchase plan for existing shareholders, which is larger than initially indicated, following its $15.5 million capital raising last year.

    In December, the company announced its plan to raise at least $18m of new capital, with at least $4m of that coming from an SPP.

    Today, it said that has increased to $6m "given the strong interest that investors have shown in the SPP and ERoad's desire to provide its loyal retail shareholder base with an opportunity to participate in the SPP", bringing its total raise to $21.5m.

    Existing shareholders will be able to buy a minimum of $1000 and up to $15,000 of shares at a maximum of $3.04 per share, the price paid by investors in its share placement to institutional investors in December.

    The price paid will be the lower of a 4.7 per cent discount to the average end of day market price of the shares over the five-day trading period from February 21 to February 27 2018, and $3.04.

    Some $5m of the shares sold in the $15.5m placement came from NMC Trustees, its biggest shareholder, which is associated with chief executive Steve Newman. NMC now holds 21.7 per cent of the company.

    The share purchase plan opens today and will close on February 27, with shares allotted on March 6.

    When it announced the placement in December, Eroad said it would use $4.5m to upgrade customer support systems and as working capital for inventory growth.

    A further $5m will replace non-bank lender funding "to simplify ERoad's funding structure and operational activities", and the remaining $8.5 million will build "a digital ecosystem to better collect and analyse transport data and potential inorganic growth."

    In an investment presentation accompanying the capital raise announcement, ERoad said it is seeing ongoing growth in New Zealand and Australia, and increasing momentum in North American unit sales.

    The shares last traded at $3.60, and have gained 95 per cent in the past 12 months.


    © 2018 NZN, NZCity

     Other Business News
     26 Feb: Metlifecare hit by market, leaky fixes
     26 Feb: Chorus 1H profit hit by competition
     26 Feb: CBL appoints voluntary administrators
     26 Feb: E Tu urges direct employment of workers
     26 Feb: Passenger rail disruption due in Auckland
     25 Feb: Stiassny heads public media advisory group
     25 Feb: Auckland train driver strike starts Monday
     Top Stories

    Quad injury sidelines Tahs lock Simmons More...

    Metlifecare hit by market, leaky fixes More...

     Today's News

    Powerful earthquake hits Papua New Guinea 12:25

    Campbell confident with change to putting 12:25

    China to have more ski resorts than Europe ahead of 2022 Winter Olympics 12:05

    USS Carl Vinson aircraft carrier sails through South China Sea in defiance of China 11:55

    China to scrap presidential term limits, clearing way for Xi Jinping to rule indefinitely 11:55

    Woman badly burnt in Auckland car fire 11:55

    Metlifecare hit by market, leaky fixes 11:05

    Living & Travel:
    Animal abusers shamed in SPCA list 10:45

    Health & Safety:
    Mental health patients wait too long 10:25

    Chorus 1H profit hit by competition 10:15

     News Search

    Power Search

    © 2018 New Zealand City Ltd