Vmoto strikes $6m JV deal

Scooter manufacturer Vmoto plans to raise $6 million to help it establish a joint venture company with one of Europe's leading electric scooter makers.

The Perth-based company today said it had struck a deal with E-Max to form a new company which will hold certain assets and intellectual property from the German scooter maker.

Vmoto will own 60 per cent of the new company after paying €1 million ($A1.64 million) to existing E-Max shareholders, and injecting €2.5 million ($A4.1 million) in capital.

The 40 per cent balance will be held by existing major shareholders of E-Max, and Vmoto will issue 5 million of its share to some minority shareholders, which will be escrowed for 12 months.

The JV agreement is valued at nearly $6 million.

The new company will be based at Vmoto's existing Nanjing facility in China.

Vmoto today said it had received firm commitments to place 30 million shares at 20 cents each to institutional and sophisticated investors.

Shares in Vmoto were up half-a-cent to 19c at 14:09 AEDT.

Vmoto managing director Patrick Davin said the new company will enable Vmoto to fast-track its electric scooter program by at least 12 months.

"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," he said.

The JV is subject to due diligence, which Vmoto said is substantially complete.