HI AFD,Certainly a lean mean management team with no...

HI AFD,

Certainly a lean mean management team with no unproductive snouts in the trough.

IMO a share buy back would help the share price but only until the cash ran out. Unless it got us into a must buy list it would most likely be just a distraction for Ivan.

You have to admire Charles and Ivan.

The alliance has got the makings of a great deal with no downside. I imagine it's just the first step. A toe in the water, if you like, to provide an opportunity to get to know how good the charged people actually are. VMT using its financial strength will likely end up with the lions share of the action as they did with Super Soco. I will watch this story unfold with much interest.

Vmoto would own all the patents for the Charged range of bikes which secures them an OEM margin on 100% of KD packs.

Plus they get to own 8% of all Charged Assets and profits without putting in any cash up front.

A bit like a supplier buying into VMT at 4.5c, when all VMT had was a factory, and not having to pay anything. The consideration being a discount on the first four years production up to a maximum of a $4.5m discount which is probably a portion of the OEM net margin based on projected sales. The discount is a maximum of $4.5 m and a minimum of $0 if they don't sell anything. If they sell heaps the discount stops at $4,5m

This is a similar arrangement to the JV Italian Distribution agreement where VMT gained 50% of the distribution business by selling the bikes to the JV at a small discount to make that business more profitable. Attractive to Malone because he had 50% of a more profitable business and a financial strong partner who could supply good product cheaply.

If Charged fly we are locked into a bonanza on the cheap. If they don't we get 8% of the net assets for nothing and are in the box seat to take control and keep things lean and mean and do the job properly.

Crap period for equity markets. They could announce the Appointment of Charles III the King of the Greenies, as chairman and a 200% increase in profit and the market would say not interested. We are selling out of equities at the moment. Didn't someone say "timing is every thing". VMT's time is coming. Now is not the time to worry about the share price. Put them in the bottom drawer and wait patiently.