Global Electric Vehicle (EV) company Vmoto (ASX:VMT) reports it has entered into a strategic technology and investment agreement with motorcycle manufacturer and distributor Charged Asia, the owner of PT Industri Charged Mobilitas and PT Charged Tech Indonesia.
Under the agreement, Vmoto will invest up to US$3 million by way of credit offsets on batteries and EV’s supplied from the company to Charged Asia or its subsidiaries over a 3-year period (credit period).
For its services under the agreement, Vmoto is expected to receive equity of 8% in Charged Asia, which currently has an investment valuation of US$38 million.
It is reported that regardless of whether the available credit offsets are fully utilised during the credit period, upon the expiry of the credit period, the subscription price shall be deemed to have been satisfied in full by Vmoto.
“We are proud to be an integral part of Charged Asia’s mission and vision for Indonesia”
Commenting on the agreement, Vmoto Managing Director, Charles Chen says: “We are proud to be an integral part of Charged Asia’s mission and vision for Indonesia as they scale up within the third largest motorcycle market in the world capable of distributing anywhere between 5 million to 8 million new motorcycles every year.”
Charged Indonesia Chief Commercial Officer, Stephanus Widi adds: “We are very honoured to have Vmoto join our mission to accelerate the adoption of electric vehicles in Indonesia and beyond. Charged Indonesia is well poised to scale with Vmoto’s support as our core technology partner and strategic investor.”
The company also notes that it will act as the core technology partner of Charged Indonesia and will provide all necessary technical assistance to Charged Indonesia in relation to electric motorcycle products.
In addition to the expected benefits of its ownership interest in Charged Asia and accessing the large Indonesian EV markets, the newly signed relationship between the 2 companies will allow Vmoto to expand its footprint in Asia, explore new applications for its products and access new business opportunities.
Vmoto is a global scooter manufacturing and distribution group that specialises in high quality electric powered two-wheel vehicles and manufactures a range of western designed electric scooters from its wholly owned 30,000m-square state of the art manufacturing facility in Nanjing, China. The company combines low cost Chinese manufacturing capabilities with European design and offers high performance and competitive products to international markets.