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Supply Agreement

28 Sep 2015 07:00

RNS Number : 3435A

Vmoto Limited

28 September 2015

VMOTO ENTERS INTO NEW INTERNATIONAL

SUPPLY AGREEMENT

ANNOUNCEMENT 28 SEPTEMBER 2015

KEY HIGHLIGHTS

· Vmoto has entered into a new international supply agreement with Saturna Green Systems Inc ("Saturna"), a North American Telematics high-tech company, focused on developing state-of-the-art wireless shared transportation and communication systems for electric two and three-wheel vehicles

· Following initial trials, testing and financing Saturna intends to purchase a minimum 32,000 units of Vmoto's E-Max electric scooters fitted with Saturna's technology, platform and software over 5 years for use in Saturna's Electric Scooter Sharing Project

· Vmoto's E-Max electric scooters installed with Saturna's technology, platform and software will be deployed in Saturna's Electric Scooter Sharing Project in two North American and European cities, expected to be followed by the roll out of additional scooters in other cities across North America, ahead of proposed worldwide distribution

· Significant potential benefits are expected to flow to Vmoto and Saturna, including growth initially in the North American and European markets for both, and synergies between the two companies in electric vehicle technology and networks

Vmoto Limited (ASX/AIM: VMT) ("Vmoto" or the "Company") is pleased to announce that it has entered into an initial supply agreement with Saturna Green Systems Inc ("Saturna") with the intention of supplying Vmoto's E-Max electric scooters installed with Saturna's components and software for use in Saturna's Electric Scooter Sharing Project (the "Agreement").

Charles Chen, Managing Director of Vmoto, commented: "This international supply agreement with Saturna is another significant agreement for Vmoto and further highlights our competitive advantages in supplying reliable electric two-wheel vehicle products that meet international standards and the various requirements of international markets. Saturna's shared transportation system and technology are leading the transformation of electric vehicles into "smart" electric vehicles. Saturna's Electric Scooter Sharing Project is expected to have a profound impact on electric vehicles as a daily mode of transport and aims to ease traffic congestion, air pollution, overcrowded public transport and parking issues in high density central business districts with a practical, affordable and fun riding experience for users."

Anwar Sukkarie, founder and CEO of Saturna, commented: "This supply agreement with Vmoto represents a significant step in the evolution of Saturna and the delivery of our Electric Scooter Sharing Project. As such, it was very important for us to partner with an experienced manufacturer that has the capabilities and scale to supply reliable, high quality electric two-wheel vehicle products that meet international standards and requirements in North America. The Electric Scooter Sharing Project has received substantial support from governments in a number of countries and we are planning to launch in Vancouver, Canada first with a goal to expand to other cities of choice. We are very pleased to be able to partner with Vmoto and look forward to developing a long-term and fruitful relationship with them."

About Saturna Green Systems Inc

Saturna is a high-tech company based in Canada, focused on developing state-of-the-art wireless shared transportation and communication systems for electric two and three-wheel vehicles. Based on what Saturna believes is a highly customisable and scalable Saturna Platform, Saturna's products and technology bring the many benefits of mobile wireless technology to users of electric two and three-wheel vehicle users - where Saturna's advanced system can help riders and fleet managers to monitor and manage the electric vehicle's on-board systems, power consumption and charging, and locate and track the location of the electric vehicle efficiently.

Saturna provides Transportation-as-a-Service ("TaaS") services employing Saturna Platform and Software for various applications including but not limited to:

· scooter sharing;

· tourism services; and

· fleet services.

Anwar Sukkarie, founder and CEO of Saturna has previously commented: "In the not-too-distant future, two and three-wheel electric vehicles will revolutionise the way people and businesses go about their daily lives. We will be leaders in wireless technology that makes electric, and conventional, two and three-wheel vehicles more profitable, practical, affordable and fun."

Terms of Supply Agreement

Under the terms of the Agreement, Saturna intends to use Vmoto's E-Max electric scooter equipped with Saturna's Platform and Software for its operations worldwide. Vmoto and Saturna have already spent several months working together and will continue to work closely on technical product specifications and recall and warranty terms, the E-Max scooter and technical modifications meeting Saturna's technical, logistical and operational requirements, and agreeing final pricing.

As part of its preliminary work and planning Vmoto has already shipped 4 test scooters to Saturna. Vmoto will continue to work closely with Saturna over the next few months to trial, tune, obtain homologation and integrate Saturna's Platform and Software into Vmoto's E-Max electric scooter and Saturna will bear the cost of such trialling, testing and modification, albeit that Vmoto shall repay such costs if it is unable to supply 3,000 Vmoto E-Max electric scooters equipped with Saturna's Platform and Software by 31 December 2017.

Following completion of the above work Saturna will commit to purchase a minimum of 32,000 units of Vmoto's E-Max scooters equipped with the Customer's components and software over a five year period following initial shipment of commercial scooters anticipated to be a master order of 3,000 such scooters to be delivered by 31 December 2017. Vmoto understands that Saturna is in the final stages of raising the funds it will require to be able to satisfy the cost of the development of the scooters and any subsequent orders as envisaged.

Further announcements will be made in relation to this Agreement as and when appropriate.

For further information, please contact:

Vmoto
Charles Chen, Managing Director Olly Cairns, Non-Executive Director	+86 1391 3388 886 charles@vmoto.com.cn +61 8 9226 3865

finnCap Ltd Christopher Raggett/Simon Hicks (corporate finance) Tony Quirke/Mia Gardner (corporate broking)	+44 20 7220 0500

About Vmoto

Vmoto Limited (ASX/AIM: VMT) is a global scooter manufacturing and distribution group. The Company specialises in high quality "green" electric powered two wheel vehicles and manufactures a range of western designed electric scooters from its low cost manufacturing facilities in Nanjing, China. Vmoto combines low cost Chinese manufacturing capabilities with European design. The group operates through two primary brands: Vmoto (aimed at the value market in Asia) and E-Max (targeting the Western markets, with a premium end product). As well as operating under its own brands, the Company also sells to a number of customers on an original equipment manufacturer ("OEM") basis.

Pictures of Saturna