Global electric vehicle company, Vmoto Limited (ASX: VMT) has entered into an agreement with Nova Machina, one of the first companies in South Africa focused on e-mobility solutions to last mile deliveries and fleet operations.
Nova Machina oversees the transition of commercial fleets from internal combustion engines to electric vehicles, ensuring that fleets achieve superior performance while significantly reducing their carbon footprint. Nova Machina has also been supportive of developing sustainable last mile delivery solutions that integrate electric vehicles into existing delivery networks.
"We are proud to partner with Nova Machina to accelerate the transition of petrol vehicles to electric vehicles as Vmoto and Nova Machina share the same vision and belief in electric vehicles and a commitment to reduce carbon emissions," Vmoto’s Managing Director, Charles Chen, said.
"Together with Nova Machina, we identified opportunities in the South African delivery market and at the initial stage, Nova Moto will conduct some pilot projects before scaling. We are confident that with Vmoto and Nova Machina’s strategic advantages and expertise, we have a great chance to make a significant impact in the South African delivery market."
The key terms of the Joint Investment Agreement are:
- Vmoto and Nova Machina will incorporate a new operating company, Nova Moto (Pty) Ltd;
- Nova Machina will invest South African Rand (ZAR) 3.5 million (~A$290k)1 in cash for 65% of Nova Moto;
- Vmoto will invest ZAR 1.9 million (~A$156k) in electric mopeds, swap and charging stations and batteries;
- Nova Moto will have exclusivity for Vmoto’s Citi model for South Africa;
- Nova Moto will have a Board of Directors comprised of 3 members, with 2 Directors to be appointed by Nova Machina and 1 Director to be appointed by Vmoto; and
- An independent Chief Executive Officer will be appointed by the Board who will be responsible for the day-to-day operations of Nova Moto.
