It appears that electric scooter maker Vectrix is in significant financial trouble; it's seeking a sale or merger in the absence of a near-term government loan, grant or other outside funding. The Rhode Island-based company will also be cutting 60 employees, although it's not clear if those cuts will come from HQ, the R&D facility in Massachusetts or its manufacturing facility in Poland. Vectrix was among the first companies to bring a viable electric motorcycle to market, so it's a shame to see it floundering while companies like Chrysler and GM, whose much-touted electric offerings are still nothing but vaporware, receive taxpayer funding. On the other hand, we've heard from many dealers and customers who have been extremely unsatisfied both with the company's business practices and products.
Vectrix issued the following statement regarding its precipitous financial situation:
Vectrix Announces Exploration of Strategic Initiatives and Reduction in Work
Middletown, R.I.- April 14 - Vectrix Corporation (AIM: VRX) (www.vectrix.com),
maker of the world's first high performance, two-wheel zero emission vehicle
(ZEV), announces that while its efforts continue to secure new equity funding
and government based loan or grant support as well as temporary financing, the
Directors will now begin to seek other strategic alternatives which could
include a merger or sale of the business. The Company will continue to provide
updates to the market as we progress through these activities. In order to
conserve working capital for continuing operations during this period, the
Company this week implemented cost savings measures including a significant
reduction in workforce involving some 60 staff.
Trading in the common stock of the Company remains suspended until further