Your comment "as long as we maintain a fair proportion of international sales (which is my expectation) we should have no issue" seems to answer the question .
The JV with Super Soco splits the world into China and Outside of China.
"Vmoto will hold the exclusive rights over sales and marketing of all Vmoto (E-Max) and Super Soco electric scooter and motorcycle products into international markets and Super Soco will hold the exclusive rights over sales and marketing of the same products domestically in China."
We each own 50% of the Chinese registered manufacturing company, Nanjing Vmoto Soco Intelligent Technology Co Ltd (“Vmoto Soco”) This splits the Chinese manufacturing part of our business from the rest on an arms length basis.
Vmoto's Chinese earnings will be * 50% of Vmoto Soco's manufacturer's earnings * the rent Vmoto Soco pays for our factory * the earnings from leasing the Power Eagle trademark
I imagine that Vmoto Soco will sell product to Super Soco's and to Vmoto's distribution companies, in our case, outside china and make a commensurate profit.
Vmoto's distribution companies will then on sell those products to dealers or directly to business end users and have legitimate earnings and hopefully profits which will all be earned in the countries where sales are made. One has to hope those profits will be held in accounts in those countries and be able to be repatriated to Australia without any restriction.
VMT Price at posting:
23.0¢ Sentiment: None Disclosure: Held
