Wednesday, 15 August 2018

Announcement

OFFER: ERD: EROAD LIMITED ANNOUNCES EQUITY RAISING

12 Dec 2017 09:22NZX
12 December 2017

EROAD Limited (NZX: ERD) (EROAD) is pleased to announce that it will be
raising new capital to support the continued implementation of its strategy.
The capital will be raised via a combination of a placement to raise at least
$14 million and a Share Purchase Plan (SPP) to raise at least $4 million.

EROAD forecasts continued strong growth in net new contracted units for the
remainder of FY18. To service the continued growth, EROAD intends to use the
capital raised to support three key areas of EROAD''s business: business
processes, non-bank debt replacement and incremental growth.

To support core business growth, $4.5 million will be used for upgrading
customer support systems to maintain high service levels as well as providing
working capital for inventory growth. Additionally, $5 million has been
budgeted for replacing non-bank lender funding to simplify EROAD''s funding
structure and operational activities. The remaining $8.5 million or more will
be used to develop and expand disruptive product offerings as well as
building a digital ecosystem to better collect and analyse transport data and
potential inorganic growth.

The placement will be conducted today through a bookbuild in which
institutional and other select investors in New Zealand, Australia, Hong Kong
and Singapore will be invited to participate by First NZ Capital Securities
Limited.

Following EROAD''s decision to undertake the placement, NMC Trustees Limited
as trustee of the NMC Investment Trust (NMC Trustees), EROAD''s largest
shareholder (with 26% of all EROAD shares on issue), decided to offer
approximately $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 remains fully committed to the EROAD
business, and will remain a significant shareholder following the placement.
Following the placement, Steven is expected to indirectly hold in excess of
21.5% of all EROAD shares, through NMC Trustees Limited.

In addition to the placement, EROAD intends to make an offer of at least $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.

The placement and SPP will be fully underwritten by First NZ Capital
Securities Limited.

A copy of the notice of offer of same class financial products and investor
presentation accompany this announcement.

- Ends -

For further information please contact:
Michael Bushby
Chairman
Michael.Bushby@eroad.com
+64 9 927 4700

About EROAD

EROAD is a fully integrated technology, tolling and services provider.
EROAD''s goal is to offer flexible and powerful solutions based on its
innovative technology to assist in the creation of a transport sector that is
responsive to the evolving needs of business, government and the wider
community.

The EROAD platform consists of a secure electronic distance recorder (Ehubo),
integrated with mobile applications, and an online bank-grade payment gateway
and services portal. It undertakes design and manufacture of its in-vehicle
hardware, as well as software development, from its headquarters in Auckland,
New Zealand.

EROAD''s advanced technology provides road charging, compliance and commercial
services with the same platform to lower overall client and delivery costs
for transport operators across New Zealand, Australia and North America.
End CA:00311778 For:ERD    Type:OFFER      Time:2017-12-12 09:22:06
Views: 161
EROAD Limited Ordinary Shares
 3.700 Change:
0.00
0.00%
 
Open:3.700 
High:3.700 
Low:3.700 
Volume:0 
Last Traded:07/02/18 00:20:49 
Bid:3.650 
Ask:3.700 
52-Wk High:3.990 
52-Wk Low:1.610