Vmoto gets seal of approval from investors with heavily oversubscribed raising
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Special Report: The company closed a heavily oversubscribed capital raising almost $4m, after initially planning to raise just $1m in early April.
Electric scooter manufacturer Vmoto (ASX:VMT) announced a huge tick of approval from its investor base this morning, as the company stays on track with its global expansion plans.
Back on April 6, Vmoto announced a $1m capital raise via a share purchase plan, to provide it with a financial buffer amid the height of uncertainty caused by the COVID-19 health crisis.
In response, the company’s shareholders rushed in to participate. So much so that this morning Vmoto announced it had closed a heavily-oversubscribed funding round of $4m – four times its initial target.
The successful raise leaves Vmoto with surplus cash reserves, as it targets key distribution channels for its market-proven fleet of two-wheeled electric scooter models.
And just as importantly, it marks a vote of confidence from investors – evidence that the strategic goals of the Vmoto executive team are clearly aligned with the shareholder base.
In its announcement today, Vmoto said the additional capital left it well-placed to “aggressively execute its growth strategy and deliver sales and revenue growth in 2020”.
The value of shares allocated to eligible participants will be calculated as the volume weighted average price of VMT stock in the five days prior to the issue date of Tuesday May 19.
Vmoto remains focused on expanding sales through both business-to-consumer (B2C) and business-to-business (B2B) channels, with a focus on the European market.
It follows a number of successful deals in late-2019 and early-2020, including a sales agreement for 2,000 scooters with leading European ride-sharing platform GO Sharing in late-January.
Prior to the coronavirus pandemic, the global market for electric scooters was growing at around 50 per cent per year, and Vmoto is focused on executing its sales pipelines as global economic activity returns in the second half of the year.
“Vmoto’s strategic priorities for the remainder of 2020 are to continue to streamline manufacturing operations and increase market share in European and other international markets,” the company said.
“I’d like to personally thank all of the shareholders that continue to support us and participated in this SPP,” managing director Charles Chen said.
“We remain confident in our ability to deliver sales and revenue growth as the rest of 2020 unfolds and look forward to providing positive updates to the market as appropriate going forward.”