It's fallen off a cliff! Exits the NZX 50 after close of business today. Not clear where there will be support.
Printable View
It's fallen off a cliff! Exits the NZX 50 after close of business today. Not clear where there will be support.
Two big trades at the close down to .93 , hmmmmmm !
DonkeyKong - The listing that replaces ERoad in the NZX 50 index is Vulcan Steel Limited (VSL) effective market open on Monday.
Memo to Self: Always exit any holding to be removed from the NZX 50 Index immediately that is known (and preferably sooner, if that becomes a realistic possibility) regardless of fundamentals.
Over 3.5m traded at a VWAP of 93.65c today as the scramble to leave intensified, but my recollection is was at $1.24 when the announcement was first posted early this month.
Obviously - would have been a good idea for ERD. Not sure, though whether it is appropriate to turn that into a generic rule. Some companies thrown out of the NZX50 still do quite adequate. I remember HLG used to be in the NZX50 ... and some punters love it. Depends as well on whether they leave the index for their weakness or whether somebody bigger (e.g.) just got listed.
Well, I have punted in a small way by taking out the depth at 98c this afternoon in two transactions via my company and my trust. A pity I wasn't home on Friday afternoon to trade in at the close, but I have screwed up courage today. I guess while there is some liquidity just now it will absent itself soon, but I am happy to see what the next 12 months bring.
Interesting little announcement released just in time for Christmas. . .
http://nzx-prod-s7fsd7f98s.s3-websit...679/386337.pdf
"Market Release
23 December 2022
Contingent Consideration payment agreed with Coretex Vendors
Transportation technology services company EROAD (ASX/NZX: ERD), with its purpose of safer
and more sustainable roads, today confirms that it has agreed with the vendors of Coretex
that it will pay $19.5 million of contingent consideration relating to the merger of Coretex.
This contingent consideration will be comprised of 1,833,000 new EROAD shares
($10,998,000 million based on the price fixed at the time of the merger of NZ$6 per share) to
be issued on 28 December 2022 and $8,500,000 million cash.
The Coretex Transaction, which completed on 30 November 2021, included deferred
consideration payable to the vendors of Coretex of up to a potential $30.6 million payable
after 12 months following the completion of the transaction and several criteria being met.
The deferred consideration payment was approved by the shareholders at the Special
Shareholders’ Meeting on 30 July 2021.
Ends
Authorised for release to the NZX and ASX by Ksenija Chobanovich, General Counsel and
Company Secretary."
Not really $18.m vendors are getting
Only $10m seeing share price crush from $6 at time of merger …ouch