SYDNEY, AUSTRALIA: Global electrical vehicle firm Vmoto Limited (ASX: VMT) has entered right into a strategic advisory and funding settlement with Giovanni Castiglioni (Castiglioni) together with a partnership and funding agreement with Graziano Milone (Milone), each well-known and skilled European entrepreneurs, investors and executives within the worldwide motorcycle industry.
The Castiglioni household has over thirty years of historical previous within the motorcycle industry, having beforehand owned a few of the most iconic and profitable motorcycle manufacturers and companies worldwide such because the iconic and prestigious MV Augusta.
The style and design of the most profitable MV Agusta bikes were conceived throughout the Castiglioni household management. The strategic settlement with Castiglioni will consist of a direct funding in Vmoto as well as to the appointment of an advisor to Vmoto’s board of administrators with the target of developing new gross sales alternatives and marketing strategies, each within the European market and globally.
Castiglioni will additionally share his huge expertise in motorcycle designs and collaborate with Vmoto on the event of new motorcycle merchandise for the Company.
At the identical time, Vmoto has additionally appointed Mr. Graziano Milone, partner of Vmoto’s three way partnership in its Italian distribution company, Vmoto Soco Italy srl (VSI), because the Company’s Chief Marketing Officer / President of Strategy and Business Development. Milone is an skilled entrepreneur with a confirmed historical previous of success in quite a few sectors, together with the distribution of motorcycles.
Milone has efficiently developed and elevated gross sales for a variety of famend worldwide buying and selling and manufacturing teams in Italy and Europe.
The Company, through VSI, has entered into an funding settlement with Milone.
Along side the direct funding in Vmoto, Castiglioni will additionally make an funding in VSI. Following the Castiglioni funding into VSI, each Castiglioni and Milone will every personal 25% of VSI (together 50%), whereas Vmoto will retain a 50% curiosity in VSI.
Castiglioni and Milone have agreed to subscribe for 1.2 million and 300,000 Vmoto Shares respectively, at an issue price of the decrease of $0.36 per share; and the market price per share as on the Completion Date much less 15%.
They have additionally subscribed for 21 million and 2.1 million free attaching choices respectively which, if exercised, will inject a additional $12.9 million in money into the Company.
The Shares and Options will be issued pursuant to the Company’s 15% annual placement capacity.
Castiglioni, through his nominee, has additionally agreed to purchase a 25% curiosity in Vmoto’s Italian distribution company, VSI, from the existing 50% three way partnership partner.
Mr Milone, through his nominee, will retain a 25% curiosity in VSI and Vmoto will maintain its 50% curiosity in VSI.
VSI serves as an important worldwide distribution arm for the Italian market and actively facilitates Vmoto’s growth in pursuing enterprise alternatives across the world.
In addition, Vmoto has agreed with every of Castiglioni and Milone, to a put and name choice to purchase all of the shares held by Castiglioni’s nominee and Milone’s nominee in VSI, the share price of which is tied to an EBITDA multiplier based on the 2023 and 2024 efficiency of VSI.
The put and name option periods commence on the date of approval of the monetary statements of VSI for the 2024 monetary year and lapse 6 months thereafter.
It is important to underline that Vmoto has together with the strategic partnership with Castiglioni and the important thing global appointment of Milone, inaugurated the European design and product development center in Italy.
The first merchandise designed for new Vmoto premium series are the results of the collaboration with C-Creative, one of many main design and engineering facilities within the sector, led by the world well-known designer, Mr. Adrian Morton and the important thing engineer, Mr. Paolo Bianchi.
Together they’ve created a few of the most iconic and profitable bikes of the previous 20 years.
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