A disgruntled group of Vmoto shareholders has launched a campaign to replace the current board of directors, saying many stock owners have no confidence the board and the executive management team can restore shareholder value.
A disgruntled group of Vmoto shareholders has launched a campaign to replace the current board of directors, saying many stock owners have no confidence the board and the executive management team can restore shareholder value.
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 last month.
The stock has staged a modest recovery in recent days to trade around 3.3 cents.
A letter obtained by WA Business News that has been circulated among shareholders said a group of dissident stock owners had assembled a team of "experienced and qualified business associates" with a plan to reinvigorate the company.
The shareholders are led by Vmoto investor Gerard Fitt.
Mr Fitt said the company's performance for the past two years had been disappointing, but the majority of shareholders believed Vmoto's products had good potential.
He said the failure of a $5 million loan agreement signed in October last year to materialise was "totally unacceptable" and cited a lack of information surrounding a 30,000-unit scooter supply contract in Vietnam as troubling.
"Today we are uncertain how many units are being supplied as the company has not provided any further information to the market," Mr Fitt said in the letter.
"Does the lack of information suggest there are problems with the contract, or, worse still, no contract exists?"
Other concerns were a lack of disclosure of the results of a review of the business' operations and the fact that the company only has two directors and one Australian director currently in place.
"I went to China in November 2010 and the current managing director Patrick Davin presented a report that said our revenue in 2011 was going to be $40 million," Mr Fitt said.
"Two months later I come home and get the half-yearly report and its $4.2 million.
"The numbers just can't be that far out, and we've just got to get some real numbers as to where we're going."
"We've got a fantastic product and great potential, but we've got a deliver that potential to the shareholders and the shareholders have a right to know where we are and where we're going.
"A lot of people say 'what's the plan?', well the plan is, first of all, to get an understanding of where we are today, because I think no one really knows."
Mr Fitt said the group would act quickly to make changes to the board if it gains the necessary support from shareholders.
"Our plan will build on the steps initially implemented in December 2010 by the then executive chairman, Russell Goodman," Mr Fitt's said in his letter.
"Those steps were all but stopped with his resignation in February, a step that he took in order to give the current board and management the time to perform.
"In our view, they have not done so and urgent change is now essential."
Mr Goodman has indicated his willingness to help rebuild Vmoto, provided there is enough shareholder support, the letter said.
