Vmoto secures over $8m from the US

Vmoto has secured up to $8.4 million through United States institutional investors as it moves to start full scale scooter production at its Chinese manufacturing facility.

The company today executed an agreement with US investor La Jolla Cove Investors Inc for the issue of up to four convertible debentures, each valued at $US1.5 million, to raise up to $US6 million ($A8.4 million).

Vmoto managing director Patrick Davin said the debenture issue is a prudent measure taken by the company to ensure it has enough working capital for the Nanjing manufacturing facility.

"In light of the recent global economic downturn and uncertainty over global growth, all forms of finance have become increasingly difficult to obtain and a proactive approach by Vmoto management has now secured an avenue for funds should they be required," he said.

Subject to certain conditions, Vmoto will immediately issue the first debenture to the debenture holder.

New York investment bank KTA Capital acted as agent and advisor to Vmoto.

Shares in Vmoto closed down 0.4 cents to 3.9 cents today.