Join our daily newsletter At The Bell to receive exclusive market insights
- Electric scooter manufacturer Vmoto (VMT) has received firm commitments to undertake a $9.6 million placement
- More than 21 million fully paid ordinary shares will now be issued to strategic, sophisticated and professional investors at 45 cents each
- Vmoto will use the money to speed-up potential opportunities in the business-to-consumer (B2C) and business-to-business (B2B) electrical two-wheel vehicle markets
- Company shares are up 8.57 per cent and are trading for 57 cents each
Electric scooter manufacturer Vmoto (VMT) has received firm commitments to undertake a $9.6 million placement.
The company entered a trading halt on August 10 regarding the placement but did not state how much it would be raising or where the money will go.
Strong demand was received for the placement from institutions, as well as strategic, sophisticated and professional investors.
All up, 21,411,108 fully paid ordinary shares will now be issued at 45 cents each, representing a 7.4 per cent discount to Vmoto’s 10-day volume-weighted average price.
Vmoto will use the money to speed-up potential opportunities in the business-to-consumer (B2C) and business-to-business (B2B) electrical two-wheel vehicle international markets.
“Recent operational and commercial successes during the current global pandemic highlight that the company has reached an inflection point in its growth,” Managing Director Charles Chen commented.
“As a result, it was approached by several strategic funds and took decisive action to further strengthen its balance sheet, ensuring it is in as strong a position as possible to capitalise on this success and accelerate its growth going forward,” he said.
“As a result of the placement and the additional capital raised, Vmoto is now in an even stronger position for all its shareholders, and very well placed to accelerate its growth and expand its strategy to drive long-term value for investors,” he added.
Vmoto is up 8.57 per cent and shares are trading for 57 cents each at 12:31 pm AEST.
