VMT has a very healthy $6.2M cash in bank what would have been a good buffer in these troubled times. After June 2020 it will have zero.
The cynic in me sees this deal is that it is simply a mechanism to extract the $6.2 million cash.
Meanwhile Soco pays nothing for 5 years and after that time the patents and moulds which will no doubt be valued at precisely $6.4 million will be used as their contribution. And in the meantime what happens to further R&D? Xiaomi who have an excellent R&D record look like they're no longer interested in being in the scooter business.
Puck2 is right.
VMT Price at posting:
21.5¢ Sentiment: None Disclosure: Held
