EROAD Limited (NZX: ERD) (EROAD) is pleased to announce it has successfully raised approximately NZ$15.5 million through its placement announced on 12 December 2017 at a price of NZ$3.04 per share, a 4.7% discount to EROAD’s 5 day VWAP. The increase in the size of the placement reflects the strong support from a number of new and existing investors.
As part of the placement, NMC Trustees Limited as trustee of the NMC Investment Trust (NMC Trustees), EROAD’s largest shareholder, also successfully offered NZ$5 million of its shares for sale through the placement.
Steven Newman, the Chief Executive of EROAD, has an indirect interest in the shares held by NMC Trustees. Steven Newman remains fully committed to EROAD with NMC Trustees retaining an approximate shareholding of 21.7% after the placement, and prior to the Share Purchase Plan (SPP).
EROAD’s ordinary shares will recommence trading upon market open today. Settlement and allotment of the new shares is expected to occur on 15 December 2017.
As announced previously, EROAD intends to make an additional offer of at least NZ$4 million through an SPP. The SPP is expected to give each EROAD shareholder whose address recorded in EROAD’s share register is in New Zealand an opportunity to subscribe for shares.The final terms of the SPP are expected to be announced in more detail in early calendar year 2018, but eligible shareholders will pay the lower of the placement price or a discount to the share price at the time.
For further information contact:
Michael Bushby
Chairman
Michael.Bushby@eroad.com
+64 9 927 4747