Adios Amigos

That's it for me. I'm out at 0.21.

After 13 or so years as a shareholder and $85K incinerated, I've finally had enough. One of the founders was a good mate of mine and super enthusiastic about the prospects of Vmoto which was why I bought in.

Since then, all I have seen is decimation of shareholder value through a litany of misadventures resulting in a product of such abysmal quality that no one wanted to touch it.

Vmoto's problem after the Vietnam debacle was that its reputation and brand was tarnished beyond repair. Their two retail outlets in Perth and Brisbane were shut down and dealers and owners were left with the mother of all lemons. Recent annual reports have been deceptive in including the spectacular Super Soco production numbers as though they were Vmotos. Its not easy to find out exactly how many original Vmoto scooters were built and sold.

Super Soco and Xiaomi, I had hoped may have been their saving grace but it seems that the original investors in SS have seen the light and want out. They have now successfully hoovered up the $4 million we had in cash in what is a very one sided deal. Those molds and the IP for the Soce technology will be completely worthless in 3 years time. Molds wear out and technology moves at a such a rapid pace that anything older than 2 years is a museum piece (look at your PCs)

So this brings us to yet another Capital Raising - which they promised we would not need because of the then healthy $4 mill in the bank.

Without the design and engineering smarts of Xiaomi, Vmoto is dead in the water,they have neither the financial nor intellectual ability to keep up and compete with the newer evolving technologies. This SPP will barely touch the sides before another one is announced because of "unforeseen" Covid19 impairments.

Lastly, the only real asset of VMT is the factory and the land that its on. So, say in a horror worst case scenario, it has to be sold off, how does anyone think the monies will find their way back to shareholders hands here in Australia? And what proportion of it will be gobbled by fees, costs etc etc.?

All I can say is that I spent 4 years working in China - nothing is transparent or ever as it seems. I don't pretend to be an expert but nothing surprises me anymore.

Meanwhile, VMT will remain a happy playground for the day traders and pump and dump specialists as can be seen by the ludicrous posts of the past 6 months.

If short term speculation and day trading is your game then VMT is the perfect vehicle for you. Have fun!

So long Socos.