VMT

8.33%

13.0¢ vmoto limited

I am coming around to it also. Please ignore my earlier post. I...

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14/10/23

19:48

Post #: 70346669
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Originally posted by LommiMario: ↑

Yes, what's not clear to me is why have they drawn the $4.3m operating facility. To pay for the q3 purchases of $6.5m (patents, trade marks, land etc). Didn't they have cash to cover those? Also, the facility is july23 to july24. When have they drawn it? Why is the facility expiring in july24? In the half yearly they didn't say anything about it in the subsequent events section.
The $325k to buy interests in distributors is the same amount to buy the French one, which was due to settle in October. Do they need to raise that money as well?
I have always said that $28m real or not are peanuts in an industry that still needs to spend a lot to be able to grow. So if the 28m are real and they didn't borrow or raise anything they would have spent, by july 24, ~$14m for the new factory (includingthe land bit), plus $6.5m for the q3 23 purchases. And since there is the possibility of not generating cash flows from operations for the next 3 quarters, they would have been left with 6 or 8 $m by july 24. Which is not a very solid position, acceptable if the economy is ok and they can generate strong cash flows. With 6 or 8m cash they couldn't take advantage of any opportunity or need to fund growth, such as factory in thailand or simply start funding more R&D and needed inventory. In times or uncertainty suppliers start to demand earlier payments and you can see that in the balance sheet, this causes the working capital to grow simply to maintain the same level of sales, let alone grow them. Inventory alone to grow sales to 140k units will have to grow by more than that 6m and its all good if they can finance that with cash flows, like it should be, but the outlook doesn't seem to indicate that. To conclude, whilst there is always the possibility that the accounts are bogus, I think that they will need plenty of cash to fund all the activities needed to reach their targets and they will have to finance those regardless of the economic downturn expected in cy24; so raising cash is quite sensible. It is obvious that the bank wasn't interested in providing the capital (for reasons i do not know), so they ask the shareholders.

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I am coming around to it also. Please ignore my earlier post. I have requested it to be deleted. CR probably is smart. VMOTO website has 16 models for sale or soon to be for sale. https://www.vmoto.com/Products/

NIU have 5-6. Kawasaki are planning to have 5 by 2025. While everything is doom and gloom, the overall range is looking damn impressive. Just need a super bike. https://www.vmoto.com/Products/

I do understand based on the fleet alone, why they want to have the extra cash. And regarding the money being in China. Let's not forget Charles has been with this company for 12 years. Ivan even has his degrees in Australia.

VMT Price at posting: 15.0¢ Sentiment: Hold Disclosure: Held
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Last 13.0¢		Change 0.010(8.33%)		Mkt cap ! $52.67M

Open	High	Low	Value	Volume
12.0¢	13.0¢	12.0¢	$22.73K	182.2K

Buyers (Bids)

No.	Vol.	Price($)
1	31385	12.5¢

Sellers (Offers)

Price($)	Vol.	No.
13.0¢	208534	3

View Market Depth

No.	Vol.	Price($)
1	31385	0.125
1	13061	0.120
4	113734	0.115
3	30227	0.110
2	21600	0.105

Price($)	Vol.	No.
0.130	208534	3
0.135	202822	5
0.140	20000	1
0.145	1900	1
0.150	110513	3

Last trade - 16.10pm 03/05/2024 (20 minute delay)


Last 12.0¢		Change 0.010 ( 4.00 %)
Open	High	Low	Volume
12.0¢	12.0¢	12.0¢	2800
Last updated 12.48pm 03/05/2024 ?

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