SP has continued to creep upwards to $1.44 and has touched $1.46 intra-day. I wonder when we will have an announcement clarifying "where to now" with the NBIO from Brillian?
When I look back to the nadir ERD reached earlier this year holders will be very happy presently.
Transport technology firm Eroad was unchanged at $1.44. It was reported that Volaris Group, owned by Toronto-listed Constellation Software, presently has no intention of increasing its takeover offer (at $1.30 a share), though it reserves the right to do so if there is a change of circumstances.
The Volaris action hasn’t attracted any other suitors so why do they need to do anything?
Meanwhile it’s up to ERD itself to kick some goals to prop up the SP. Where are the announcements of some big North America customer wins..?
The other factor is ERD are forecasting cash flow neutral by FY25 and cash flow positive by FY26. Doing this means they will keep within their $90m debt facility. Any miss here and it’s cap raise time. So Volaris can sit and watch and any slip up will make it easier for them to get the rest of the company at the cheap price of $1.30
The firm, ultimately owned by Toronto-listed Constellation Software, said in response to speculation: “Volaris Group wishes to clarify that it currently has no intention to increase its proposal price under its NBIO, although it reserves its right to do so if there is a change of circumstances - including, but not limited to, being granted access to due diligence by Eroad”.
This was my fear, that unless there was another company interested in purchasing that they would just sit tight and wait,
I am happier now with my decision to sell at $1.38 than I was yesterday
Reply With Quote
Bookmarks