Vmoto Limited (VMT) is pleased to announce that it has signed a Heads of Agreement to enter into a strategic alliance with the shareholders of one of the world’s leading electric scooter companies, E-Max Ev’s Germany Ltd. E-Max is a German company based in Oberhaching, near Munich in Germany.
The company’s main focus is the development of advanced electric technologies, with the aim of making the daily use of electric vehicles practical, cost-effective and comfortable for the customer. E-Max is one of the few companies that provide a scooter with technologically advanced Li/Ion batteries and a matching battery management system, or BMS. E-Max’s design function was undertaken by Paolo Valcic in Italy and the company has development departments located in both Germany and Italy. Production, which is under German management, is located in Wuxi, near Shanghai, China.
Vmoto and E-max will form a new company which will acquire certain assets and intellectual property from E-Max. The new company will be based at Vmoto’s manufacturing facility in Nanjing, China and will utilise Vmoto’s existing manufacturing and export licence, providing increased manufacturing capacity to satisfy the existing demand for electric scooters that E-Max is currently unable to fulfil.
Vmoto will own 60% of the new company, following a payment of €1.0million (AUD$1,640,000) to the existing E-Max shareholders and a €2.5million (AUD$4,100,000) capital injection to the new company. The 40% balance of the new company will be owned by the existing major shareholders of E- Max. Approximately 5 million Vmoto shares will be issued to some minority shareholders of E-Max, which will be escrowed for a period of 12 months. To facilitate the transaction, Vmoto further advises it has received firm commitments to raise AUD$6,000,000 via a placement of 30,000,000 shares at an issue price of $0.20 each, to institutional and sophisticated investors. This price is at a premium to the market price of Vmoto shares prior to it entering trading halt on 8 December 2009. The establishment of the new company will provide Vmoto with immediate access to 4 electric scooter models, enabling it to fast track its electric scooter.
“The previously announced Stage Two of Vmoto’s Nanjing Facility will now be fast tracked to absorb the increase in demand from Vmoto’s Petrol Scooter, Electric Scooter and Scartt Divisions. “It is a pleasant coincidence that the new company will come into being at a time when our world leaders are sitting around tables in Copenhagen trying to come up with solutions to global warming. “This new deal advocates the policy of everyone at Vmoto, and also within the soon to be established new company, to become part of the pollution solution as we move into the next decade, one which I think will see a benchmark change to electric forms of transport for the world.”
Australian based Vmoto Limited is a global integrated scooter manufacturing and distribution group. Vmoto specialises in high quality motor scooters and All Terrain Vehicles (ATV’s) using state-of-the-
art production facilities situated in China. Vmoto also operates an international scooter and ATV trading and distribution.