Ann: Becoming a substantial holder, page-22

Have you got any idea at $1.50 what is the market cap? What sort of earning and pe ratio would justify a $1.50 price? How many bikes VMT need to be selling to achieve that kind of earning?

At $1.50 the market cap will be approx AUD 380mil. To justify AUD 380 mil market cap, let's assume a PE ratio of 21 (current PE ratio of S&P 500 companies) and NPAT at 12.5% of sales on average at AUD 2300 for each bike. So how many bikes do we need to be selling annually? The answer is about 63,000 bikes which 15,760 bikes each quarter.

Look at our recent number approx 5800 in Q1. Assuming robust sales growth of 30% every quarter we will end the year with 35,800 bikes which are slightly more than half of what we need to be selling for a $1.50 share price.

Unless
- The likes of Warren Buffett takes a stake
- We work with a SPAC and relist in the US
- Exchange shares with prominent EV players
- Honda or others signaling their interest in a buyout
- A major supply deal that blows out the current sales volume

Else
I would be happy with 0.75 at end of 2021 which I believe is more realistic. $1.50 maybe by end of 2022