Roadrunner (OTC: RRTS) announced Thursday it recently closed an equity private placement for $50 million. The round was led by a $10 million investment from Andrew Leto, who founded third-party transportation providers GlobalTranz and Emerge.
The proceeds are expected to be used for technology investments centered on “planning, pricing and efficiency.” The company will also use the funds to bolster its leadership roster and improve service.
“Roadrunner is really a technology moving trucks, not a trucking company. Every shipper needs a consolidator like Roadrunner, and most are not taking advantage of what Roadrunner has to offer. We are changing that,” said Leto.
The new shares have the same liquidation preference as the subscription price, which was a 15% discount to the trading price when the deal was struck earlier in 2021.
The Downers Grove, Illinois-based company has been engaged in a significant restructuring to stem losses, improve its capital structure and refocus on core operations. Those efforts included the spinoff of Ascent Global Logistics, unwinding several previously failed acquisitions and delisting from the New York Stock Exchange.
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Mike Udermann
“Roadrunner is really a technology moving trucks, not a trucking company. Every shipper needs a consolidator like Roadrunner, and most are not taking advantage of what Roadrunner has to offer. We are changing that,” said Leto.
Really – this statement in and of itself is not accurate. Roadrunner is a trucking company (with drivers, trucks, trailers, terminals) utilizing technology to enhance their business operations to effectively and efficiently move their customers freight. Anyone involved in trucking knows and understands that. Either FreightWaves misunderstood the comment or printed in incorrectly or as noted, Michael Leto is a very well respected leader in our industry and if this is what he said, then he had to have misspoke.
Technology is a conduit – in order to move freight, it takes the infrastructure of physical assets to do so, as noted, (drivers, trucks, trailers, terminals) and people to make that happen!
Johnny Irish
Mike, Mike, Mike your so correct and so totally wrong at the same time. Mr. Leto knows what he is talking about. Be Honest he just dropped a soft 10 Million into Road Runner and lately into the digital market place of My Carrier in AZ. My Carrier does LTL on a digital platform and I am sure 1 of it main carriers will be Road Runner. I know WHO CARES. Now a need to know fact is that the Emerge company is pinging for AGENTS all over the US and Emerge does not offer agents a in house LTL option. However Emerge does facility to facility line haul for Road Runner. So you have to give Mr. Leto credit for thinking or keeping everyone outside the box. Congrats! To Road Runner, Emerge and My Carrier and just imaged no SEC to deal with Awesome!
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