12th Jun 2015 07:00
VMOTO SUCCESSFULLY RAISES A$8.9 MILLION TO FUND GROWTH INITIATIVES
ANNOUNCEMENT 12 June 2015
Vmoto Limited (ASX/AIM:VMT) ("Vmoto" or the "Company"), the global scooter manufacturing and distribution group specialising in "green" electric powered two-wheel vehicles, is pleased to announce that it has received firm commitments to raise approximately A$8.9 million through a placement to institutional and sophisticated investors (the "Placement") of 19,780,000 ordinary shares of no par value ("Ordinary Shares") (the "Placement Shares") at $0.45 (£0.2247) per Placement Share (the "Issue Price"). The Placement was oversubscribed.
Commenting on the successful capital raising and the Company's growth plans, Vmoto Managing Director Charles Chen said: "We are very pleased with the strong support received for Vmoto's capital raising in Australia and the UK that saw the raising oversubscribed and new institutions participate. The level of interest clearly demonstrates the significant evolution the Company has undergone in the past few years that has seen Vmoto become a global electric scooter manufacturing and distribution group.
"The funds raised will be applied to further strengthen Vmoto's balance sheet and allow the Company to purse attractive strategic initiatives to underpin future growth. These include establishing online sales platforms, expanding distribution channels in China and enhancing Vmoto's manufacturing and R&D capabilities."
Placement and use of proceeds
Over the past year, the Company has achieved a number of key milestones, including the record sales of over 76,000 units in 2014 and over 19,400 units in 1Q15, up 37% from 1Q14. Growth has been a common theme across all key metrics, attributable to the successful expansion into new markets and the acquisition of Nanjing Haiyong Electronic Technology Co, Ltd ("Haiyong"), a prominent EV controller business. Further information on the Company's operations can be found in Vmoto's operational review released on 31 March 2015.
The net proceeds of the Placement will be used primarily to enhance Haiyong's manufacturing efficiency and R&D capabilities as well as further investment in the Company's electric three and four-wheel JV division. Proceeds will also be used to establish and enhance Vmoto's Australian physical and online distribution platform and capabilities. The Company also intends to invest further in domestic China and International marketing efforts with the aim of securing further revenue across its business.
The Placement was completed utilising the Company's existing placement capacity pursuant to ASX Listing Rule 7.1, to sophisticated and professional investors qualifying under s708 of the Australian Corporations Act 2001 (Cth).
Broker options
Blue Ocean Equities Pty Ltd acted as lead manager to the Australian portion of the Placement. Vmoto's joint UK brokers, Mirabaud Securities LLP and finnCap Ltd ("finnCap") were joint lead managers to the UK portion of the Placement. In addition to their capital raising fee, and subject to available 15% placement capacity, Vmoto has agreed to issue options to these lead managers, exercisable at $0.75 each on or before 31 December 2017, equal in total to 4% of the new shares issued pursuant to the Placement. Accordingly, Vmoto expects to issue a total of 791,200 options over Ordinary Shares to its brokers at the earlier of the next Annual General Meeting or Extraordinary General Meeting.
Director shares
As previously approved by Shareholders at the Company's Annual General Meeting on 21 May 2015, the Company will also issue 38,095 Ordinary Shares to Non-executive Director, Mr Kaijian Chen in lieu of Director fees and 133,334 Ordinary Shares each to Managing Director, Mr Charles Chen and Non-executive Director, Mr Olly Cairns following the vesting conditions of the Class H Performance Rights being met (the "Director Shares").
Following the issue of the Director Shares, the Directors' shareholdings will be as follows:
Director | Existing number of Ordinary Shares held | Director Shares issued | Resulting number of Ordinary Shares held after Admission | Resulting holding as a percentage of the Ordinary Shares in issue immediately after Admission |
Charles Chen | 5,388,140 | 133,334 | 5,521,474 | 3.61% |
Oliver Cairns | 2,254,950 | 133,334 | 2,388,284 | 1.56% |
Kaijian Chen | 650,505 | 38,095 | 688,600 | 0.45% |
Admission
Application will be made for the Placement Shares and the Director Shares to be admitted to trading on AIM ("Admission"). Dealing are expected to commence in the Placement Shares and the Director Shares on 17 June 2015. The Placement Shares and the Director Shares will rank pari passu with the existing Ordinary Shares. Following Admission, there will be 152,910,433 Ordinary Shares on issue.
For further information, please contact:
Vmoto
Charles Chen, Managing Director Olly Cairns, Non-Executive Director +61 8 9226 3865
Investors and media
Market Eye Pty Ltd Ronn Bechler +61 400 009 774
finnCap Ltd
Christopher Raggett (corporate finance)
Simon Hicks (corporate finance)
Tony Quirke (corporate broking) +44 20 7220 0500
Mirabaud
Peter Krens (equity capital markets) +44 20 7878 3362
Ed Haig-Thomas (equity capital markets) +44 20 7878 3447
About Vmoto
Vmoto Limited (ASX/AIM: VMT) is a global scooter manufacturing and distribution group. The Company specialises in high quality "green" electric powered two wheel vehicles and manufactures a range of western designed electric scooters from its low cost manufacturing facilities in Nanjing, China. Vmoto combines low cost Chinese manufacturing capabilities with European design. The group operates through two primary brands: Vmoto (aimed at the value market in Asia) and E-Max (targeting the Western markets, with a premium end product). As well as operating under its own brands, the Company also sells to a number of customers on an original equipment manufacturer ("OEM") basis.
Related Shares:
VMT.L