Troubled Perth-based scooter manufacturer and retailer Vmoto has provided another market update, amid growing pressure from shareholders to reveal more details surrounding key contracts, financial details and the status of its executive search.
Troubled Perth-based scooter manufacturer and retailer Vmoto has provided another market update, amid growing pressure from shareholders to reveal more details surrounding key contracts, financial details and the status of its executive search.
Vmoto announced today a manufacturing and supply agreement with Malaysian firm Eclimo had come into effect, under which Vmoto will supply 500 electric scooter chassis to Eclimo.
The first 200 are expected to be delivered in August, and the remaining 300 by the end of October.
Vmoto also said Italy's TNT Courier Services had paid a deposit for the first 33 units of a previously announced deal for 180 Vmoto delivery scooters.
Finally, Vmoto said Vancouver-based Saturana Green Systems had signed a distribution agreement to cover Canada and Brazil.
SGS has a minimum purchase requirement of 1,000 scooters for the rest of 2011, and a further 4,000 over 2012, Vmoto said.
First scooters under the contract will be delivered this month.
The update comes after another scathing letter was circulated among Vmoto shareholders late last month.
The letter, penned by dissident shareholder Gerard Fitt, said the potential appointment of prospective Vmoto directors with long-standing relationships with the current board was not renewal, but simply jobs for associates to fortify the current directors' positions.
Mr Fitt launched a campaign to replace the current board of directors in March, saying many stock owners have no confidence the board and the executive management team can restore shareholder value.
Vmoto announced on June 21 that it was "actively involved" in the process of sourcing additional directors to strengthen its board, and promoted company secretary Shannon Coates as non-executive director.
Mr Fitt went on to say that during a tour of China he discovered Vmoto's claims that stage two of the redevelopment of its manufacturing facility in Nanjing were false, and that completion of the factory was a long way away.
Mr Fitt's letter also lashed out at Vmoto's last market update, saying it lacked details on units manufactured to date, units sold, orders, margins or NPAT,
"But they managed to include an FY2011 revenue estimation," Mr Fitt's letter said. "Not sure how one publishes this information but refuses to coment on the most important KPI's."
The letter did, however, concede Vmoto's business model and product was capable of being resurrected and had the potential to be commercially rewarding.
"That said, the window of opportunity to take control of Vmoto and implement the necessary change is closing," Mr Fitt said.
"For without change in the immediate term, we fear that Vmoto will be just too damaged to reinvigorate."
Vmoto shares have been on a downward spiral for the past two years, dropping from a high of 21 cents to a low of 1.7 cents in April.
At close of trade today Vmoto's stock had gained 12 per cent, to trade at 2.8 cents.
