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It's hard not to get excited when you read articles like this...the growth potential is enormous...




Aussie innovators left behind


August 15, 2009 06:00pm

VMOTO managing director Patrick Davin has savaged Australia's mining obsession, saying it starves innovative firms of funds and export opportunities.


With a recent order for 30,000 scooters to Vietnam, a $12 million engine deal to Korea and $48 million in sales last financial year, the ASX-listed WA company has had to turn overseas for help.


``We've had no support from Australia,'' Mr Davin said.


``We manufacture offshore by all means _ our factory is in China and our design office is in Spain _ but everything we do originates from here, Australia.


``Yet we've never had an export grant and we can't even raise money here _ we had to go to America.''


Mr Davin said it was even more painful knowing other countries had seen the potential in his home-grown scooter business where Australian interests hadn't.


``We own our land in China, we own the factory _ we have no borrowings _ so I went to the banks here and they just laughed at us,'' he said.


``And then Bank of China _ the biggest bank in China _ gave as an operating trade facility like that.


``When we've developed technology in Spain we've had support from the Spanish Government.


``We've got interest from a dozen different countries now that want to distribute the Vmoto brand.


``Most of the governments around the world are throwing money at battery technology ... and here we are developing all our new bikes so that the petrol engines can be removed and electric engines slotted in.


``You'd think someone in Australia would be interested, but we've given up trying.''


He may sound bitter, but Mr Davin says he understands the nature of capital-raising in Australia _ he just wants to change it.


``When you're getting so much revenue from mining and state governments are reliant on royalties ... how does a company like ours draw the same interest?


``Here we are trying to raise $3 million or $4 million, then a company like FMG walks in and wants to raise $260 million.


``So while Australia has this easy option _ iron ore, uranium, gas _ there just isn't going to be the same money for start-up companies.


``We've got an opportunity to change that. Where do you think all this iron ore is going in China? It's going into products that are coming back to Australia.


``If you own that, you own something much more than a hole in the ground where the residual value depreciates _ you create something.''


And that's just what Vmoto plans to do. With its design office in Spain and manufacturing base in China, the scooter firm is aiming to be a world leader in electric vehicles.


``There are 300 million Chinese who are coming up to an income level where they get off their bicycles and on to a scooter,'' Mr Davin said.


``We don't sell anything domestically in China at the moment _ it's all export _ but we are planning to.


``It's happening already. We've been working on direct-drive electric technology for 18 months _ we'll have an electric scooter on the market by the middle of next year.


``We'll also have an electric version of our all-terrain vehicle, the Scartt, by the middle of next year.


``I see China in the next 18 months to two years having a lot more demand for electric scooters.''


Vietnam has already become a major export destination, with first deliveries due in September.


``Although we signed a contract for 30,000 units, the customer wanted 100,000 _ it's a big deal to us,'' Mr Davin said.


``We've also just signed a $12 million deal to supply engines to Korea and we've got expressions of interest from the Philippines, Indonesia and India.


``We've just dipped our toes into the South American market with our four-wheel drive vehicles, so we're about to bust out.


``And yeah, it would be very easy to close our offices here and move to Shanghai, but I'm also very proud to be Australian _ and I want to keep it here."


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Subject to the satisfactory completion of due diligence by Vmoto, Vmoto and E-max will form a new company which will acquire certain assets and intellectual property from E-Max. The new company will be based at Vmoto's manufacturing facility in Nanjing, China ("Nanjing Facility") and will utilise VmotoÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s existing manufacturing and export licence, providing increased manufacturing capacity to satisfy the existing demand for electric scooters that E-Max is currently unable to fulfil.

Vmoto will own 60% of the new company, following a payment of ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’‚¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¬1.0million (AUD$1,640,000) to the existing E-Max shareholders and a ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’‚¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¬2.5million (AUD$4,100,000) capital injection to the new company.

The 40% balance of the new company will be owned by the existing major shareholders of E-Max. Approximately 5 million Vmoto shares will be issued to some minority shareholders of E-Max, which will be escrowed for a period of 12 months.

To facilitate the transaction, Vmoto further advises it has received firm commitments to raise AUD$6,000,000 via a placement of 30,000,000 shares at an issue price of $0.20 each, to institutional and sophisticated investors. This price is at a premium to the market price of Vmoto shares prior to it entering trading halt on 8 December 2009.


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Things are starting to happen for Vmoto now.....

First shipment underway to supply their 30k units per annum Vietnam contract announced yesterday and now they have a new Ozzie distributor.... V1

Vmoto Limited ("Vmoto" or "the Company") is pleased to announce that it has today entered into a new Australian distribution agreement ("Distribution Agreement") with StuRay Investments Pty Ltd ("StuRay"), a scooter distribution group headed up by internationally recognised motorcycle identity Mr Raymond Rooney.

Pursuant to the Distribution Agreement, which has an initial five year term, Mr Rooney and his team will be responsible for the distribution of all Vmoto scooters, spare parts and merchandise to every state in Australia. The existing dealer network of approximately thirty dealers will remain in place however they will now deal directly with StuRay for all Vmoto products. Discussions are also now taking place with a view to adding a further twenty dealers to the existing network, with a target of sixty dealers in Australia by the end of the 2010 calendar year.

Mr Rooney has extensive distribution experience in the motorcycle industry, gained from ownership of some of EuropeÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s largest motorcycle dealerships. He has over thirty five years of experience in riding, racing and sales of motorcycles and has worked with such brands as Yamaha, MV Augusta and KTM. Under the new arrangement with Vmoto, Mr Rooney will run a dedicated Vmoto scooter dealership based in Perth, Western Australia, and control the national distribution from his warehouse in Malaga.


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This could be the start of something.......V1

Vmoto Limited ("Vmoto" or "the Company") is pleased to announce that its electric scooter strategic alliance company, Vmoto Emax, has successfully tendered for and signed an agreement ("Agreement") with the Intermurcia SL group of Spain ("Intermurcia"), the exclusive agent for the Spanish postal service, Correos, to supply electric delivery scooters.

Pursuant to the Agreement, Vmoto Emax will supply an initial order of 128 specially designed delivery scooters to Correos within the next 3 months, with a further 300 units to be delivered by October 2010. The initial 12 month requirement is for 2,000 units.

The Spanish postal service currently has a fleet of 14,000 petrol delivery scooters and is hoping to replace up to 80% of this fleet with electric scooters over the next 3 years. The project was put to tender by Correos, with Intermurcia tendering successfully using a Vmoto Emax electric scooter.

Following the recent climate change discussions in Copenhagen, the Spanish Government has been one of the first Governments around the world that has embraced the need for lower emission vehicles for its Government fleets. It has also recently announced a rebate of up to 800 Euro to retail customers for electric scooter purchases in Spain.

On the back of the successful Spanish postal service tender, Vmoto Emax is currently fielding enquires from a number of other postal, delivery and courier type companies around the globe. Discussions are now taking place, the results of which will be released to market if required in due course.


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