Vmoto (ASX:VMT) has entered into a joint venture with OMO Mobility to establish a new company, OMO Watts, which will supply electric motorcycles, mopeds, and e-mobility services in Mexico, according to a Wednesday filing with the Australian bourse.

Under the terms of the agreement, Vmoto will hold a 20% stake in OMO Watts, investing about $108,391 in cash, along with $108,392 in electric mopeds, swap stations, and batteries by Mar. 31, 2025, the filing said.

OMO Mobility will invest $69,930 for an 18% stake, while key management of OMO Watts will contribute $339,860 for the remaining 62% interest by Mar. 31, 2025.

The joint venture will be governed by a Board of Directors comprising three members, two appointed by OMO Mobility and one by Vmoto.

Shares of the company fell 16% on market close after earlier hitting an all-time low.