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LONDON - VivoPower International PLC (NASDAQ:VVPR) announced today it has closed the first phase of its previously announced $121 million investment round, receiving gross proceeds of $60.5 million. The investment is led by Prince Abdulaziz bin Turki bin Talal Al Saud and includes a consortium of non-U.S. investors. The company, currently valued at $51.3 million, has seen its stock surge over 259% in the past six months, though InvestingPro data shows it remains unprofitable with a concerning cash burn rate.
The company completed this initial closing within existing authorized share capital parameters. The remaining 50% of the investment is expected to close pending shareholder approval to increase authorized share capital.
According to the press release, proceeds will support VivoPower’s strategy focused on Ripple and XRP treasury and decentralized finance solutions, along with broader transformation initiatives.
The private offering was made only to non-U.S. persons in compliance with Regulation S under the Securities Act of 1933. The securities have not been registered under the Securities Act and cannot be sold for at least 40 days post-registration.
VivoPower, listed on Nasdaq since 2016, describes itself as undergoing a strategic transformation to become "the world’s first XRP-focused digital asset enterprise." The company states its new direction involves acquiring, managing, and holding XRP digital assets as part of a treasury strategy.
The company operates globally with a presence in the United Kingdom, Australia, North America, Europe, the Middle East, and Southeast Asia. VivoPower maintains two business units: Tembo, focused on electric solutions for fleet applications, and Caret Digital, described as a power-to-x business for renewable power applications including digital asset mining.
The transaction completion is subject to conditions outlined in the subscription agreements, including absence of material adverse changes for the company.
In other recent news, VivoPower International PLC has announced a strategic partnership with BitGo to enhance its XRP treasury strategy. This collaboration involves utilizing BitGo’s trading desk and custody platform for an initial acquisition of $100 million in XRP tokens. VivoPower has also entered into a partnership with Flare Network, aiming to generate yield on its digital assets, starting with its XRP holdings. The company plans to reinvest the income back into its core XRP holdings through Flare’s protocols. Additionally, VivoPower is fast-tracking the spin-off of its subsidiary Caret Digital via a NASDAQ IPO, targeting a market capitalization of $308 million. The company is in talks with potential investors to secure up to $50 million in pre-IPO funding. Furthermore, VivoPower has appointed David Mansfield as CFO and Keith Loose as CTO, with Suneet Wadhwa joining its Board of Advisors to bolster its digital strategy. The company has also set an ex-dividend date for potential Tembo-related payouts, although no guarantee of special dividends has been made. These developments underscore VivoPower’s strategic shift towards becoming an XRP-focused digital asset enterprise.
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