7 Sep 2023

ERoad seeking funds to repay debt, pressing on with expansion plans

2:12 pm on 7 September 2023
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Photo: ERoad

Transport software company ERoad is looking to raise $50 million to repay debt and further expand its growth strategy, particularly in North America.

The company said the capital raise was fully underwritten, with about $11.6m to be taken up by institutional investors, alongside a $38.4m offer to eligible shareholders at a rate of 70 cents per new share for every 2.06 shares held.

The offer to shareholders was a near 50 percent discount to Wednesday's closing price of $1.39 a share.

The company was pressing on with its expansion plans amid a near $150m takeover offer from a subsidiary of Canadian software firm Constellation, which appeared to be stalled over the offer price.

ERoad growth strategy found renewed energy last month after company founder, large shareholder and former chief executive Steven Newman announced he would return to the business as a technology consultancy.

ERoad had been placed in a trading halt this morning pending the outcome of its institutional bookbuild, or by the market opening on Monday 11 September.

Company chair Susan Paterson confirmed ERoad's outlook for the full year was tracking to expectations.

"Furthermore, I am pleased to announce that ERoad has secured commitments from lenders for a new three-year financing facility with an additional lender included in the syndicate," she said.

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