Vmoto looks to China with $5m raising

02/10/2013 - 14:04

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Scooter manufacturer Vmoto has boosted its funding with a $5 million capital raising as it eyes growth opportunities in China.

Vmoto looks to China with $5m raising

Scooter manufacturer Vmoto has boosted its funding with a $5 million capital raising as it eyes growth opportunities in China. 

Vmoto said today that it had received firm commitments from institutional and sophisticated investors to raise $5 million through a placement of 227 million shares, subject to shareholder approval.

The funds will be used to facilitate ongoing expansion into China, as well as product development and general working capital.

Vmoto managing director Charles Chen said the company was well-placed to capitalise on demand in China.

"The growth opportunity we are seeing for electric scooters and electric vehicles in general in China and around the world is signficant and these extra funds mean Vmoto is now fully funded for immediate operations, and will allow us to accelerate that growth over the next 24 months," Mr Chen said.

The company has also sealed a joint venture agreement with Chinese technology company Chinese Co, focusing on the research, development and production of technology parts for the electric vehicle market.

Vmoto will invest $1.35 million into the joint venture, consisting of an initial equity loan of $350,000 and a further working capital loan of $1 million.

The joint venture is subject to formal execution of Chinese regulatory agreements which are expected to be completed this month.

Vmoto shares fell 11 per cent to 2.4 cents at the close today.

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