I just want to try and clarify/rationalise what the announcement says. This may or may not be of any benifit to others but it will be for me so I'm doing this excersise publicly.
From the latest announcement (26/08/2024 - Settlement with Soco Shanghai):
• All current or potential future claims brought by Vmoto and its subsidiaries (Vmoto Group) against
Soco Shanghai and its subsidiaries (Soco Group) will be withdrawn and no order as to costs will be
made.
• All current or potential future claims brought by Soco Group against Vmoto Group will be withdrawnand no order as to costs will be made.
Summary: No existing or future claims from either party (Vmoto Group & Soco Group) will be pursued. No cost compensation will be chased.
Questions:
A) It specifically mentions Vmoto & Soco as seperate entities however it does not mention the third party, the joint venture of Vmoto-Soco? - One can assume this ex joint venture is now included in the above statements under the 'Vmoto and its subsidiaries (Vmoto Group)' title.
B) If Vmoto haven't paid the 2.9 mill from September 2023's announcement this means it's now null and void, does it not?
• Soco Shanghai to transfer all of its remaining Super Soco, Soco, Suke and S logo trademarks in China
and internationally to Vmoto Group.
Summary: Vmoto Group now own the trademarks.
• Soco Shanghai to transfer all of its remaining patents and designs internationally to Vmoto Group.
These patents include patents and designs for various models (TS, TC, CUX, TC-MAX, VS1, CPX, TSHunter and TC Wanderer) that Vmoto currently markets and distributes into international marketsunder license.
Summary: Vmoto Group now completely own all the patents and designs.
Question: Thought this was already settled - See announcement 21/09/2023...??
• Soco Group to transfer all of its moulds for the above models to Vmoto Group.
Summary: Vmoto Group now own and hold all the moulds.
• Soco Shanghai to transfer the remaining 50% shares of Vmoto Soco to Vmoto, which will take
Vmoto's interest in Vmoto Soco to 100%.
Summary: Vmoto now completely owns Vmoto Soco. Thus they can now sell what they want in China, when they want.
All pretty straight forward ^
Now the cruncher... \/
• Vmoto Group will pay Soco Group a lump-sum payment of RMB 31 million (~A$6.5 million1).
Summary: Vmoto group to pay Soco Group 6.5 million AUD.
Question: Is this AUD 6.5 million on top of the AUD 2.9 million that Vmoto was to pay Super Soco for the "patents, inventions & designs" as announced on 21/09/2023??
OR..... Is this latest agreement making the previous agreement null and void and superseding it.... Thus it's only 6.5 Million all up (not 9.4)? - If so, this means we have a value of AUD 2.9 million for the "patents, inventions, designs" leaving the gap of AUD 3.6 million for:
A) The insurance of no more litigation.
B) The ability to proceed with business GLOBALLY (now including China).
C) Complete ownership of Super Soco, Soco, Suke and S logo trademarks in China and internationally.
D) All moulds for the models mentioned.
E) The other 50% of Vmoto-Soco (bringing Vmoto Group's ownership of Vmoto-Soco to 100%).
I think it only makes sense that as the latest agreement goes above and beyond while still including what was mentioned in the September 2023 announcement, it likely means the new/latest agreement supersedes that of September 2023.
6.5 mill all up. Not 6.5 & 2.9.
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(20min delay)