Vmoto raises $9m

Perth-based scooter manufacturer and retailer Vmoto has received firm commitments for an $8.9 million capital raising to fund its various investment initiatives.

The dual-listed company raised the funds by way of an oversubscribed placement of about 19.7 million shares to institutional and sophisticated investors on the ASX and AIM markets, at 45 cents each.

“The funds raised will be applied to further strengthen Vmoto’s balance sheet and allow the company to pursue attractive strategic initiatives to underpin future growth,” managing director Charles Chen said.

“These include establishing online sales platforms, expanding distribution channels in China and enhancing Vmoto’s manufacturing and research and development capabilities.”

Blue Ocean Equities acted as lead manager to the Australian portion of the placement.

Last year, Vmoto purchased China-based tech firm Nanjing Haiyong Electric Technology to provide access to the Chinese market for electric three-wheel and four-wheel vehicles.

Vmoto shares were 5 per cent lower to 47.5 cents each at 9:30am.