Vmoto Limited (Vmoto or Company) (ASX: VMT) is pleased to advise the close of the Shortfall Offer in respect of the non-renounceable rights offer (Entitlement Offer) pursuant to the prospectus dated 13 October 2023 (Prospectus). Capitalised terms in this announcement have the meaning given in the Prospectus unless specifically stated otherwise.
As announced on 20 November 2023, total applications for 37,222,333 New Shares were received under the Entitlement Offer resulting in a Shortfall of 35,337,070 New Shares, which includes the entitlements of Ineligible Shareholders of 448,038 New Shares ($67,205.70) (together, Shortfall Shares).
The Company received strong support from new investors and existing shareholders for the Shortfall Offer, which closed significantly oversubscribed.
Total applications for 68,024,569 New Shares were received under the Shortfall Offer, amounting to $10,203,685.35. To accommodate the excess demand under the Shortfall Offer, being 32,687,499 New Shares ($4,903,124.85), the Company has decided to undertake a placement on the same terms as the Entitlement Offer (Follow-on Placement).
The Company believes that the Placement will assist with the following:
- discussions with potential partners in Brazil, South America, Thailand and/or Middle East for joint ventures which may eventuate in 2024;
- the additional funding allows Company to pursue business opportunities more aggressively, relying less on loans and/or existing funds which have been allocated to the construction of manufacturing facilities in Nanjing, China; and
- reduction of business risks given the current economic climate.
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