VivoPower partners with East African vehicle assembler

LONDON - VivoPower International PLC (NASDAQ:VVPR), a sustainable energy solutions company with a current market capitalization of $3.11 million, has entered into a significant agreement with Associated Vehicle Assemblers Ltd. (AVA), a leading vehicle assembler in East Africa. According to InvestingPro data, the company maintains impressive gross profit margins of nearly 75%, despite facing significant operational challenges. The five-year deal, announced today, will see AVA distribute and assemble Tembo e-LV’s electric utility vehicles across Kenya, Tanzania, and other nations in the region.

The partnership aims to convert 200 vehicles in the first year and targets a total of 1,600 conversions over five years. This collaboration is poised to bolster Tembo’s presence in East Africa, where the population exceeds 500 million people. The deal comes at a crucial time for VivoPower, whose stock has experienced significant volatility with a beta of 3.09 and a year-to-date decline of over 47%. InvestingPro analysis reveals 18 additional key insights about the company’s financial health and market position.

AVA, established in 1975, stands as the sole vehicle assembler in East Africa with IATF16949 Certification, indicating a strong commitment to quality. The company currently assembles vehicles for a host of leading original equipment manufacturers (OEMs) and boasts a capacity to assemble 30,000 vehicles annually.

Matt Lloyd, CEO of AVA, expressed enthusiasm for the acceleration in demand for electric vehicles in the region and praised Tembo’s competitively priced products that adhere to quality and safety standards. Matthew Nestor, Head of Partnerships and Sales at Tembo, echoed this sentiment, highlighting the surge in interest for Tembo’s next-generation EUV25 electric conversion kits.

Kevin Chin, Executive Chairman and CEO of VivoPower, emphasized the strategic nature of the partnership, which aligns with the company’s global strategy to partner with credible market leaders to deliver electrification solutions.

The agreement expands upon a previous partnership between Tembo and ETC Group, specifically for the Kenyan market, and reflects a shared commitment to sustainable transportation and local economic development in East Africa.

VivoPower, a B Corporation established in 2014 and listed on Nasdaq since 2016, focuses on electric solutions for customized fleet applications, including ancillary financing, charging, battery, and microgrid solutions. Trading at $0.70 per share, the company faces financial challenges with a current ratio of 0.3, indicating potential liquidity concerns. InvestingPro subscribers can access detailed financial health scores and comprehensive valuation metrics to better understand the investment potential. The company operates internationally, with a presence in several countries, including Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.

Tembo, a subsidiary of VivoPower, specializes in providing electrification solutions for utility vehicle fleet owners in various industries, aiming to support the circular economy and meet ESG goals.

This announcement contains forward-looking statements regarding the expected benefits and returns from the agreement, which are subject to risks, uncertainties, and changes in circumstances.

The information in this article is based on a press release statement from VivoPower International PLC.

In other recent news, VivoPower International PLC has initiated Dogecoin mining operations through its subsidiary, Caret Digital, at a facility in Wisconsin. The company aims to generate substantial revenues, with potential annual earnings of up to $25 million, although this figure is subject to change due to the volatile nature of cryptocurrency markets. Additionally, Caret Digital is expanding its operations to develop up to 55MW of renewable-powered mining capacity, which could bring in annual revenues of up to $150 million. In a related development, VivoPower announced a CAD$140 million (approximately US$100 million) investment commitment from GEM Global Yield LLC SCS for Caret Digital. This investment is intended to support Caret Digital’s Power-to-X strategy, focusing on renewable energy and high-energy consumption applications like cryptocurrency mining. The investment is contingent upon Caret Digital’s listing on a Canadian stock exchange and is considered non-dilutive for VivoPower’s shareholders. VivoPower’s shareholders have approved a potential spin-off of Caret Digital and a special dividend. These recent developments reflect VivoPower’s strategic focus on sustainability and renewable energy solutions.

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