Struggling scooter manufacturer and retailer Vmoto has launched a £1.56 million ($2.43 million) share placement, and plans to list on London’s Alternative Investment Market.
Vmoto said it would to raise the funds through a placement to institutional and sophisticated investors at an issue price of 1.3 pence (2 cents) per share.
Proceeds of the placement will be used to meet current orders, expand Vmoto’s product range and European distribution network, as well as complete the fitout of its manufacturing facility in China.
Also today, Blair Sergeant announced his resignation as non-executive director, to focus on his commitments with Lemur Resources.
Vmoto managing director Charles Chen said the company was delighted with investors’ reaction to the plan to list on the AIM.
“The funds we have raised will enable us to deliver on our existing opportunities in an expedient way, including ramping up PowerEagle production lines,” Mr Chen said in a statement.
“We intend to make the most of the support shown by the London investment community to expand our marketing and sales operations in Europe to exploit the growing demand for electric scooters.
“In addition, I am sure that everyone at Vmoto will join me in thanking Blair Sergeant for his staunch support and expertise as a shareholder and director over the years. We wish him well for the future”
The placement remains subject to shareholder approval.
At 12:30PM, WST, Vmoto’s stock was down 3.5 per cent, trading at 2.8 cents.