EROAD raises NZ$50 million for North American expansion

EROAD has successfully completed its institutional entitlement offer, institutional placement, and institutional bookbuild.

The company expects to raise approximately NZ$50 million through these activities.

The capital raised will be used to strengthen EROAD's balance sheet, repay debt, and support its growth strategy, particularly in the North American market.

The institutional placement raised $11.6 million, while the institutional offer raised approximately NZ$17.6 million.

The institutional bookbuild was well supported, with all unexercised institutional entitlements allocated at a clearing price of NZ$0.70 per share.

The Australian dollar issue price has been set at A$0.65.

Eligible retail shareholders will have the opportunity to participate in the retail entitlement offer, which opens on September 12 and closes on September 21.

Any premium achieved from the sale of new shares in the retail bookbuild will be paid on a pro-rata basis to eligible retail shareholders who do not take up their entitlements in full.