EROAD : Successfully Completes Placement

Not for release to US wire services or distribution in the United States

Transportation technology business EROAD Limited (NZX/ASX: ERD) today announces it has successfully raised approximately NZ$42 million through its placement announced on 17 September 2020 at a price of NZ$3.90 per share (AU$3.59 per share), representing a 10.3% discount to the last close price on the NZX on 14 September 2020 of NZ$4.35; and 9.0% discount to the ten-day volume weighted average price on the NZX of NZ$4.29.

'EROAD has today completed a placement of NZ$42 million to fund the acceleration of the execution of its growth strategies. The placement was also successful in broadening EROAD's shareholder base, which should in turn improve the stock's liquidity.' says EROAD Chairman Graham Stuart.

NMC Trustees Limited as trustee of the NMC Investment Trust ('NMC Trustees'), EROAD's largest shareholder, sold approximately 1.4 million of its shares (representing up to 10% of NMC Trustees' shareholding) concurrent with the placement at a price of NZ$3.90 per share. Steven Newman, the Chief Executive of EROAD, has an indirect interest in the shares held by NMC Trustees. Steven remains fully committed to EROAD and NMC Trustees remains EROAD's largest shareholder post sell-down.

EROAD's ordinary shares will commence trading on the ASX at 1:00pm NZST (11:00am AEST), and recommence trading on the NZX upon market open, today. Settlement of the new shares issued under the placement is expected to occur on 23 September 2020 for the ASX and on 24 September 2020 for NZX, with allotment and commencement of trading of the new shares on NZX and ASX expected to occur on Thursday 24 September 2020.

As announced yesterday, EROAD intends to make an additional offer of NZ$8 million (EROAD can at its discretion accept oversubscriptions) through a share purchase plan which opens 23 September 2020 and will be open to shareholders with a registered address in New Zealand or Australia. An SPP booklet, together with an application form, will be sent to eligible shareholders on 23 September 2020 and will be available on the website established for the SPP https://www.shareoffer.co.nz/eroad.

Bell Potter Securities Limited and Canaccord Genuity (Australia) Limited acted as joint lead managers and underwriters to the placement.

ENDS

Authorised for release to the NZX and ASX by EROAD's Board of Directors.

For Investor and media enquiries please contact:

Anna Bonney
Investor Relations
ph: [phone]
[e-mail]

This announcement has been prepared for publication in New Zealand and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US state securities laws. Shares under the SPP will not be offered or sold to persons resident in the United States.

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