ERD - ERoad. (Transport sector technology)

[whatsup]

also, what is Volaris next move? Dump the shares they have or wait patiently to acquire more at sub 70c and then launch renewed (and probably hostile) code takeover at 90c.

If the underwriters need to off load their funded shares what is to stop them from offering them to Volaris there by increasing their holding or are they restricted to the 19.99% level ?

[Poet]

If the underwriters need to off load their funded shares what is to stop them from offering them to Volaris there by increasing their holding or are they restricted to the 19.99% level ?

Volaris had c 21m shares before the cap raise. Shares on issue after the raise will be 176m so Volalris will have 12% with ability to buy another 14m without exceeding a 20% shareholding. Whether they will or not is anyone's guess.

[ronaldson]

20.3m shares needed to be taken up by the sub-underwriters at the issue price of $0.70. Allotment occurs on Monday. This will be a significant overhang, and no sign of easy clearance given the closing price today of $0.67.

Where to now for holders?

[Rawz]

Might be able to buy back in again in the 40 cent range.

[Jenny Ruth]

Hi all. I published another column on my Substack, Just the Business, this morning under the headline: What's gone wrong inside the Eroad business?
I take a look at why Eroad's share price tanked from above $6 in mid-2021, helped along lately by a botched capital raising.
It's still free to read and you can find it here:
https://lnkd.in/grNPFWgU

[Gerald]

https://justthebusinessjennyruth.sub...side-the-eroad

Good article by Jenny... Even gives ST a shoutout.

Sensible conclusion; "...that should provide some comfort that at least Eroad's directors were correct in judging the Volaris offer as too low.

It does nothing to explain why those same directors said $1.30 was too low and then decided it was a good idea to sell new Eroad shares in a great hurry at 70 cents. "

[Rawz]

That’s a good read. Basically ERD is a bit of a basket case. BlackPeter always told us that.

I’m very lucky I made some very good coin on this. Dumb luck lol

[Jenny Ruth]

Thanks for the mention - if the moderator ever lets my comment through

[ronaldson]

The two SPH Notices filed today tell us who is now left holding the bag after the underwriters were called upon for over $14m to round out the capital raise.

No sign of a willingness to dump any volume just yet. I guess no option really but to hold and hope like so many others. We will all have to wait now for time to tell.

I have considered reentering at the current sub 70c but haven't found enough motivation yet.

[ronaldson]

And today we have the Disclosure Notices for Directors and Executive Officers as to their contributions to the capital raise. The Chair didn't try very hard, but the efforts of others were more notable.

Announcement is worth a quick read and some reflection I thought.