Vmoto Scoots Into Europe

on Oct 15, 2012
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The Australian manufacturer of electric scooters Vmoto (ASX:VMT) has received commitments for its upcoming placement of shares, coinciding with the company’s dual listing on London’s AIM exchange, the portal Proactiveinvestors Australia reported on 12 October 2012. Vmoto, which specialises in manufacturing “green” electric power scooters, is currently working to expand its distribution base in Europe.

**Vmoto to Raise up to £1.56 Million on the London AIM**
The Perth-based manufacturer, which is also listed on the Australian Stock Exchange, has reportedly received strong UK institutional and investor support to raise up to £1.56 million by means of a placement of 120.8 million new ordinary shares at £0.013 each. The placement will coincide with the company’s proposed dual listing on London’s AIM exchange. It is expected that Vmoto’s entire issued share capital including the placement shares will be admitted to trading on the AIM on November 9.

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“We have been delighted by the reaction to our AIM listing in London and are pleased to welcome a number of high quality UK institutions and other sophisticated investors to our register,” noted Vmoto’s managing director Charles Chen in the company’s press release.
!m[Aussie Electric Scooter Maker to List in London ](/uploads/story/578/thumbs/pic1_inline.png)Proactiveinvestors reports that Vmoto is going to use the funds raised from the placement to meet its current order book commitments from existing customers, including the A$86 million (£54.8 million) Strategic Cooperation agreement with China’s PowerEagle.

**China Deal **
Vmoto struck the deal with Shanghai PowerEagle International at the beginning of July 2012. Perth Now reported at the time that under the agreement, Vmoto would manufacture PowerEagle’s electrical scooters, with initial orders estimated at 6000 for the rest of the calendar year. In addition, production is expected to rise to 150,000 electrical scooters in 2015. The Australian manufacturer is viewing the agreement as a way to expand operations in China, which is currently the world’s largest domestic two-wheel electric market. “Following this initial transaction, Vmoto will launch its own model specifically targeting the Chinese domestic market, and then seek to expand its reach and market share with introduction of new products,” the company said, as quoted by the Perth Now.

**The Electric Scooter Maker to Expand Business in Europe**
In addition to scooting in China, Vmoto is working to expand its distribution base in Europe. Proactiveinvestors reports that the Australian scooter manufacturer is in discussions with large international corporations such as the Belgian Post Group, Post Denmark and TNT Post Germany. The AIM listing is also expected to contribute to Vmoto’s growth in Europe, with the company working to expand production and capacity. “Without doubt, despite market conditions not being easy, there is good investment appetite for us in London and the listing on AIM makes sense as our pipeline of business expands in Europe and on a global basis,” noted Vmoto’s non-executive director Olly Cairns in the company’s press release.

The company expects that Europe will present a number of opportunities on account of the EU’s targets for reducing carbon emissions. “The strong interest reflects the more mature nature of the European investment community towards ‘green’ and environmentally friendly market opportunities,” the company said as regards the interest from UK brokers, as quoted by Perth Now.

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