Motos America Inc. (OTCMKTS:WECT) has announced about acquiring three motorcycle dealerships in Oregon, USA. The company has consummated the purchase of 100% of the membership interests in two Oregon LLCs (effective March 1, 2022): CASCADE MOTO EUGENE, LLC, and CASCADE MOTO PORTLAND, LLC. These companies own the three dealerships.
On Wednesday, WECT stock ended flat at $0.0375 with more than 11.37K shares, compared to its average volume of 5.9 shares. The stock moved within a range of $0.0375 – 0.0375 after opening trade at $0.0375.
BMW Motorcycles of Portland, BMW Motorcycles of Eugene and Triumph Portland, are the dealerships that have been acquired. No real estate was included in this transaction, but the company has entered into lease agreements whereby it continues to operate from the seller’s current facilities. It is now considering acquiring additional retail locations of BMW, Triumph, and Ducati motorcycle dealerships across United States.
These acquisitions are a crucial part of the company’s expansion plans. It strongly believes the motorcycle dealership consolidation, will have similar benefits of scale as seen in auto-dealer consolidations. Since November 2021, it has raised around $2.7 million in equity and convertible debt from private investors. It has even welcomed Kris Odwarka, a 29-year veteran in European motorcycle and automotive manufacturing, in a leadership role.
The total purchase price was $4,196,841.00. It was paid from cash on hand in the amount of $676,887.00, together with flooring lines and unsecured working capital lines of credit obtained by the Company from BMW Financial Services and other institutional lenders in the amount of $3,019,954.00. 250,000 shares of its common voting shares were issued as well, valued at $2.00 per share.
“We are proud to have added these great dealerships to our network,” said Vance Harrison,CEO of Motos America. “These three stores fit perfectly into our core business plan of acquiring powersports dealerships selling European luxury motorcycle brands. The synergy of buying three rooftops in a single market will further enhance our strategy of adding profitability through bulk buying, experiential marketing and professional management.” as Motos America meets an age of evolution where consumers are purchasing motorcycles online.”
WECT stock is trading below the 20-Day and 50-Day Moving averages of $0.0500 and $0.0463 respectively. However, the stock is trading above the 200-Day moving average of $0.0533.