26/05/2011 - 13:43

Vmoto hits back at dissident group

26/05/2011 - 13:43

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Struggling Perth-based scooter retailer Vmoto has told its shareholders that business is operating as usual and urged them to disregard a letter rallying stockholders against its board of directors.

Vmoto hits back at dissident group

Struggling Perth-based scooter retailer Vmoto has told its shareholders that business is operating as usual and urged them to disregard a letter rallying stockholders against its board of directors.

The letter, penned by Vmoto shareholder Gerard Fitt, raised concerns among stockholders that the current board and executive management team were not fit to return the company to profitability.

Vmoto's stock has been on a two-year spiral, dropping from a high of 21 cents, to trade around 3.1 cents today.

One of the major concerns raised by Mr Fitt was the lack of compliance with Australian company director requirements, with only two directors and one Australian director in place on Vmoto's board.

Vmoto released a statement today that said it was currently in advanced negotiations to secure "suitably qualified and market orientated" representatives for the board.

Vmoto said two candidates were currently in China visiting its Nanjing manufacturing facility.

Prior to arrival in Nanjing, Vmoto said the candidates secured a majority of shareholder support.

Another concern raised by Mr Fitt was a lack of disclosure around a review of the company's operations.

Vmoto said it had received a draft and incomplete copy of the review last week, and said its chief operating officer Alicia Atkinson would return to Nanjing shortly to complete it and implement appropriate changes to Vmoto's operations.

"The operation and strategic review ... will enable the board to inform shareholders of the company's future direction," Vmoto's statement said.

"Despite the ongoing disruptions caused by a minority group, the day to day operations at Vmoto continue unabated.

"The board is confident that the fundamentals of the business are good and appreciates that the additional skills brought by new members to the board is necessary to capitalise on those fundamentals."

 

 

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