Ann: Vmoto Acquires the Business and Assets of its UK Distributor, page-58

It's worth also noting that too much debt coupled with insufficient profit to service it, when head winds start to blow, brings down Asset Rich and Cash Poor Companies because they become Technically Insolvent, if they can't pay their bills when they become due, and if the directors don't appoint an administrator, limited liability flies out the window, and the directors become personally liable for debts incurred by the company.

When administrators are appointed, time is of the essence and the best assets are quickly sold for a rainy day price.

With Vmoto Distribution UK it couldn't be sold as a going concern without the new owner obtaining a distribution agreement from Vmoto. Guess who was holding all the Aces ?

Given that VMT already has a presence in UK with their B2B sales team there should be a lot of fat in the GP of circa $2m that $7.7m of sales would likely generate. So could be looking at a pay back of less than a year.

Beware of too much debt. Nice to know we don't have those worries with our investment in VMT.