ERoad met its unit sales expectations in the third quarter of the 2018 financial year, lifting total contracted units by 17 percent.
The logistics and fleet management firm said total contracted units, a non-GAAP measure it uses, rose to 69,391 in the three months ended Dec. 31, from 59,538 at the end of September.
In its established market of Australia and New Zealand, it had 9.6 percent growth to 54,579 contracted units, while in its commercial market in the US it saw 52 percent growth to 14,812 units. Both of those growth rates were in the middle of the range the company gave in an investor presentation on Dec. 12, it said.
That guidance was given ahead of a $15.5 million share placement to new and existing investors at $3.04 per share. Some $5 million of the shares sold in the placement came from NMC Trustees, its biggest shareholder which is associated with ERoad's chief executive Steve Newman. NMC now holds 21.7 percent of the company. Eroad still wants to raise at least $4 million through a share purchase plan, details of which are to be announced early this year.
The firm plans to use $4.5 million to upgrade customer support systems and as working capital for inventory growth, while $5 million will be used to replace non-bank lender funding "to simplify ERoad's funding structure and operational activities", it said. The remaining $8.5 million 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 shares last traded at $3.88 and have gained 143 percent in the past 12 months.
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