SYDNEY, AUSTRALIA: Global electric vehicle company Vmoto Limited (ASX: VMT) has entered into a strategic advisory and investment agreement with Giovanni Castiglioni (Castiglioni) along with a partnership and investment agreement with Graziano Milone (Milone), both well-known and experienced European entrepreneurs, investors and executives in the global motorcycle industry.
The Castiglioni family has over thirty years of history in the motorcycle industry, having previously owned some of the most iconic and successful motorcycle brands and companies worldwide such as the iconic and prestigious MV Augusta.
The style and design of the most successful MV Agusta motorcycles were conceived during the Castiglioni family management. The strategic agreement with Castiglioni will consist of a direct investment in Vmoto as well as the appointment of an advisor to Vmoto’s board of directors with the objective of developing new sales opportunities and marketing strategies, both in the European market and globally.
Castiglioni will also share his vast experience in motorcycle designs and collaborate with Vmoto on the development of new motorcycle products for the Company.
At the same time, Vmoto has also appointed Mr. Graziano Milone, partner of Vmoto’s joint venture in its Italian distribution company, Vmoto Soco Italy srl (VSI), as the Company’s Chief Marketing Officer / President of Strategy and Business Development. Milone is an experienced entrepreneur with a proven history of success in numerous sectors, including the distribution of motorcycles.
Milone has successfully developed and increased sales for a number of renowned international trading and manufacturing groups in Italy and Europe.
The Company, through VSI, has entered into an investment agreement with Milone.
Along side the direct investment in Vmoto, Castiglioni will also make an investment in VSI. Following the Castiglioni investment into VSI, both Castiglioni and Milone will each own 25% of VSI (together 50%), while Vmoto will retain a 50% interest in VSI.
Castiglioni and Milone have agreed to subscribe for 1.2 million and 300,000 Vmoto Shares respectively, at an issue price of the lower of $0.36 per share; and the market price per share as at the Completion Date less 15%.
They have also subscribed for 21 million and 2.1 million free attaching options respectively which, if exercised, will inject a further $12.9 million in cash into the Company.
The Shares and Options will be issued pursuant to the Company’s 15% annual placement capacity.
Castiglioni, through his nominee, has also agreed to acquire a 25% interest in Vmoto’s Italian distribution company, VSI, from the existing 50% joint venture partner.
Mr Milone, through his nominee, will retain a 25% interest in VSI and Vmoto will maintain its 50% interest in VSI.
VSI serves as an important international distribution arm for the Italian market and actively facilitates Vmoto’s growth in pursuing business opportunities around the world.
In addition, Vmoto has agreed with each of Castiglioni and Milone, to a put and call option to acquire all of the shares held by Castiglioni’s nominee and Milone’s nominee in VSI, the share price of which is tied to an EBITDA multiplier based on the 2023 and 2024 performance of VSI.
The put and call option periods commence on the date of approval of the financial statements of VSI for the 2024 financial year and lapse 6 months thereafter.
It is important to underline that Vmoto has in addition to the strategic partnership with Castiglioni and the key global appointment of Milone, inaugurated the European design and product development center in Italy.
The first products designed for new Vmoto premium series are the result of the collaboration with C-Creative, one of the leading design and engineering centers in the sector, led by the world famous designer, Mr. Adrian Morton and the key engineer, Mr. Paolo Bianchi.
Together they have created some of the most iconic and successful motorcycles of the past 20 years.
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