VivoPower begins shareholder debt reduction plan with AWN Holdings

Published 07/07/2025, 20:50
VivoPower begins shareholder debt reduction plan with AWN Holdings

LONDON - VivoPower International PLC (NASDAQ:VVPR) has initiated a shareholder debt principal reduction plan, according to a company statement released Monday. The company made its first repayment to AWN Holdings Limited on July 3, 2025. According to InvestingPro data, the company’s financial health score stands at WEAK, with a current ratio of 0.3 indicating potential liquidity challenges.

The unaudited balance of the principal component of the AWN shareholder loan stood at $28.8 million as of June 30, 2025. VivoPower stated its objective is to retire the AWN shareholder loan in full, subject to ongoing approval from the company’s independent directors and available liquidity. This debt represents a significant portion of the company’s $57.54 million market capitalization, though investors should note the stock has shown remarkable momentum with a 246% return year-to-date.

AWN Holdings, a private investment office backed by a member of Dubai’s Al-Maktoum ruling family, is a significant shareholder in VivoPower.

The debt reduction initiative is part of VivoPower’s efforts to strengthen its balance sheet and optimize its capital structure while maintaining financial capacity to support growth strategies, according to the company. InvestingPro analysis reveals several key challenges, including potential difficulties with interest payments and rapidly depleting cash reserves. Subscribers can access 15 additional ProTips and comprehensive financial metrics for deeper insight.

VivoPower, listed on Nasdaq since 2016, describes itself as undergoing a strategic transformation into an XRP-focused digital asset enterprise. The company’s business model now centers on acquiring and holding XRP digital assets as part of a treasury strategy, while maintaining its sustainable energy solutions through two business units: Tembo, which focuses on electric solutions for fleet applications, and Caret Digital, which develops power-to-x business cases for renewable power.

The announcement was made in a press release issued by the company.

In other recent news, VivoPower International PLC has announced a series of significant developments. The company has regained compliance with Nasdaq’s minimum stockholders’ equity requirement, reporting a preliminary pro forma equity of approximately $20 million. This comes after completing the first phase of a private placement, generating $60.5 million in gross proceeds, as part of a larger $121 million investment round. VivoPower is also moving forward with a planned spin-off of its subsidiary, Caret Digital, through a NASDAQ IPO, with a target market capitalization of $308 million. Shareholders will receive five Caret Digital shares for each VivoPower share held as of the record date set for July 9, 2025. The company is currently negotiating with potential strategic investors from the Middle East and Asia to raise up to $50 million to support Caret Digital’s growth initiatives. Additionally, VivoPower has engaged advisors to expedite the spin-off process, aiming to capitalize on increased interest in digital asset mining activities. The company continues to emphasize its strategic transformation into an XRP-focused digital asset enterprise while maintaining its sustainable energy solutions through its business units, Tembo and Caret Digital.

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