Vmoto extends finance facility

Struggling Perth-based scooter retailer Vmoto has received a $2.9 million increase in its operating finance facility with its local bank in Nanjing, China.

Vmoto said the funds would be utilised for general working capital.

The company also said it had secured access to an additional $750,000 debt facility, giving it a total in excess of $3.6 million in available funds.

Vmoto announced last month that it had completed construction of the second stage of its manufacturing facility in Nanjing, which prided an additional 20,000 square metres of floor space for manufacturing and assembly.

In its quarterly report Vmoto said it would remain focused on developing its electric scooter range.

"Given the funds available via the above mentioned facilities together with anticipated sales revenue to be generated from current inventory, the board is of the view that the company has sufficient working capital to continuing executing its existing strategy and will therefore not be seeking any additional funding at this time by way of debt or equity," Vmoto said in a statement.

At close of trade today Vmoto shares had jumped 17.39 per cent, to trade at 2.7 cents.

The stock has lost value over recent months on revelations that it would re-evaluate a planned headquarters shift to Queensland's Southport, and an aborted boardroom coup led by former executive chairman Russell Goodman.

Mr Goodman withdrew his attempt to dump director Trevor Beazley from the board in February.