Vmoto (ASX:VMT) to raise $1M to help with COVID-19

• Vmoto (VMT) has announced a $1 million share purchase plan to act as a buffer during these uncertain times resulting from COVID-19
• Existing shareholders have the opportunity to subscribe for up to $30,000 worth of new shares
• If more than $1 million is raised, company directors have the right to either accept over-subscriptions or scale back applications
• The share purchase plan will open on April 14 and shareholders can begin trading on the market on May 20
• Vmoto has dropped 17.1 per cent in midday trade and shares are selling for 14.5 cents each

Vmoto (VMT) has announced a $1 million share purchase plan to act as a buffer during these uncertain times resulting from COVID-19.

Under the share purchase plan, eligible shareholders will be able to subscribe for up to $30,000 worth of new shares in the scooter manufacturing company.

These will be priced at a 15 per cent discount to the volume weighted average price (VWAP) of the shares during the five days before the issue of the new shares, which is expected to be on May 19.

If more than $1 million is raised, Vmoto Directors have the right to accept over-subscriptions or scale back applications.

Of the money raised, $980,000 will be used for general working capital and $20,000 will be used for the costs related to the share purchase plan.

“In light of the recent COVID-19 outbreak, the company remains in a strong financial position and, as previously stated, has the ability to implement aggressive cost reduction initiatives should this be required,” Managing Director Charles Chen commented.

“This share purchase plan is being undertaken to provide the company with a larger financial buffer amid the uncertain times bought about by COVID-19,” he added.

The share purchase plan will open on April 14, close on May 12, and shares will be allocated on May 19 and then can begin trading on the ASX the next day.

Vmoto has dropped 17.1 per cent in midday trade and shares are selling for 14.5 cents each.