Often lost in the discourse around electric vehicles is the huge opportunity for motorcycles in the market where manufacturer Vmoto (ASX: VMT) has secured two industry-leading pioneers for the team in Giovanni Castiglioni and Graziano Milone, who will both take equity positions in Vmoto.
Castiglioni is best known as the owner of various motorcycle companies over the past 30 years, including the prestigious MV Agusta brand which was conceived and designed by his family. The MV Agusta design has since been replicated across most modern motorcycles which, under Castiglioni’s advisory services, will be integrated into Vmoto’s line of electric motorcycles and mopeds.
“I am thrilled to have someone as experienced and successful as Giovanni not only joining our share register, but also coming on board as the new team member as a global advisor who focuses on our sales strategies, global marketing and development,” said Vmoto Managing Director, Charles Chen.
“His experience and impressive track record in the global motorcycle industry gives me great confidence in his ability to support Vmoto in delivering unprecedented growth and success, enhancing the Company’s already bright future.”
The primary purpose of Castiglioni’s appointment will be to develop new sales opportunities in Europe where urban mobility vehicles are of highest need due to the high density of capital cities. Electronic vehicles in Europe already have high adoption rates but with new design elements introduced, Vmoto is hopeful of penetrating more of the market with its EVs are manufactured in Nanjing, China.
“I have been working unofficially alongside the members of the Vmoto team for some time and I am pleased to formalize this relationship,” said Castiglioni.
“I am excited about Vmoto’s growth potential and confident that with the Company’s unique and innovative products, established B2B and B2C markets, and the strong vision of Charles and his team, the Company is on the verge of becoming one of the most successful players in the electric urban mobility space.”
In addition to Castiglioni’s appointment, Vmoto also welcomes Graziano Milone who is well known to the Company through ties with partner distribution company Vmoto Soco Italy srl (VSI). Milone will join Vmoto as Chief Marketing Officer / President of Strategy.
As part of the appointments, Castiglioni and Milone have agreed to subscribe for 1.2 million and 300,000 Vmoto Shares respectively, at an issue price of $0.36 per share, or at a 15% discount on the market price, whichever is lower. At the former, it is valued as a $540k investment between the pair who will also subscribe for 21 million Options that can inject a further $12.9 million in cash into Vmoto.
The appointments of Catiglioni and Milone come following a very strong year for Vmoto which reported $86.2 million in revenue for the year ended 31 December 2021, a 41% increase on the previous year.
With the increased sales where Vmoto sold a total of 31,275 electric motorcycles and mopeds, the Company recorded $8 million in net profit after tax with no bank debt and $18.6m cash on hand.
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
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