Scooter manufacturer Vmoto has raised $1 million via a placement and has secured a $5 million loan for working capital purposes.
Scooter manufacturer Vmoto has raised $1 million via a placement and has secured a $5 million loan for working capital purposes.
The placement of 8.3 million shares at an issue price of 12 cents per share will be issues in two tranches.
"The capital raised and the $5 million loan facility will be applied towards working capital required to provide for a rapid increase in delivery required by contract customers," Vmoto said in a statement to the Australian Securities Exchange.
Vmoto said it also had new orders for several thousand scooters and several hundred Version 2 Scartts following an industry fair in Germany.
The Spanish postal service has also advised Vmoto that it requires more scooters for immediate delivery.
See company statement below:
Vmoto Limited ("Vmoto" or "the Company') is pleased to announce it has received firm commitment to raise $1,000,000 (before costs) via a placement of 8,333,334 fully paid ordinary shares ("Shares") at an issue price of $0.12 each ("Placement").
The Placement will be made under s708 of the Corporations Act to sophisticated investors. The funds raised from the Placement will be applied towards general working capital purposes.
The Shares will be issued in two tranches. Tranche 1, comprising 4,166,668 of the Placement Shares, will be issued immediately, pursuant to the Company's existing 15% placement capacity. Tranche 2, comprising the remaining 4,166,666 of the Placement Shares will be issued in approximately 30 days, following receipt of cleared funds, also pursuant to the Company's 15% placement capacity.
Following today's issue, the Company has 520,571,772 Shares on issue. An Appendix 3B will follow under separate cover.
Debt Facility
The Company also wishes to announce that it has secured a debt facility of $5,000,000 for working capital purposes.
The terms of the facility are annexed as Annexure A.
The capital raised and the $5 million loan facility will be applied towards working capital required to provide for a rapid increase in delivery requirements by contracted customers. In addition, as a result of the recent Intermot Industry Fair in Cologne, Germany, the Company has immediate orders for several thousand electric scooters and several hundred Version 2 Scartts from approximately 20 new distributors currently negotiating distribution agreements for European countries.
The Spanish postal service, Correos, has also advised that it requires further scooters for immediate delivery.
Secondary Trading Notice Pursuant to Paragraph 708A(5)(e) of the Corporations Act 2001 ("Act")
The Act restricts the on-sale of securities issued without disclosure, unless the sale is exempt under section 708 or 708A of the Act. By giving this notice, a sale of the Shares noted above will fall within the exemption in section 708A(5) of the Act.
The Company hereby notifies ASX under paragraph 708A(5)(e) of the Act that:
(a) the Company issued the Shares without disclosure to investors under Part 6D.2 of the Act;
(b) as at 15 October 2010, the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company, and section 674 of the Act; and
(c) as at 15 October 2010 there is no information:
(i) that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and
(ii) that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:
(A) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or
(B) the rights and liabilities attaching to the relevant Shares.
