Nice Rns...2 Oct 2013 08:09
02 October 2013
VMOTO RAISES $5 MILLION
SECURES STRATEGIC JOINT VENTURE
Announcement 2 OCTOBER 2013
HIGHLIGHTS
-- FIRM COMMITTMENTS RECEIVED TO RAISE A$5 (GBP2.87) MILLION for continued growth
-- PROPOSED JOINT VENTURE WITH A PRIVATE CHINESE ELECTRONIC TECHNOLOGY COMPANY
The Board of Directors of Vmoto Limited (ACN 098 455 460) ("Vmoto" or "Company") is pleased to announce:
-- the receipt of firm commitments for a placement to raise $5 million to facilitate, among other things, the Company's continued growth in China; and
-- the execution of a Joint Venture agreement with a private Chinese company, which focuses on the research, development and production of technology parts for the electric vehicle market.
Charles Chen, Managing Director, commented: "We are pleased with the reaction to Vmoto in Australia and the UK over recent weeks and welcome new high quality institutions and investors to our register. The growth opportunity we are seeing for electric scooters and electric vehicles in general in China and around the world is significant and these extra funds mean Vmoto is now fully funded for immediate operations, and will allow us to accelerate that growth over the next 24 months.
"The Joint Venture is an important deal for Vmoto and has the potential to provide the Company with several strategic benefits, including access to electric vehicle technologies central to the electric system. This in turn enhances Vmoto's IP and value add, enabling it to become a more integrated manufacturer. We also anticipate that the Joint Venture will increase both our revenues and profits and provide us with access to a more diverse base of electric vehicle products and markets."
PLACEMENT TO RAISE $5m (GBP2.87m)
Vmoto has received firm commitments from Australian and UK institutional and sophisticated investors to raise $5 million (before costs) at an issue price of $0.022 (GBP0.0127) per share (the "Placement"). The Placement was oversubscribed.
The Placement Shares will be issued in two tranches, as follows:
1. Tranche 1, comprising the issue of 54,545,455 Shares, is expected to be issued on or around 8 October 2013 pursuant to the Company's 15% annual placement capacity, to raise $1.2 million (before costs); and
2. Tranche 2, which is subject to Shareholder approval, will comprise the issue of the remaining 172,727,273 Placement Shares and raise a further $3.8 million (before costs).
The Company will be issuing a notice to Shareholders setting out details of the resolutions to be put to Shareholders at the general meeting to be held on or around 13 November 2013 in due course.
Use of Placement Funds
The Placement has been undertaken to ensure Vmoto can maintain and continue the significant growth path it is experiencing in China. Specifically, the funds raised will be used for:
1. Joint Venture investment (see below);
2. Continue
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