VivoPower reduces $7.5 million in liabilities through share issuance

LONDON - VivoPower International PLC (NASDAQ:VVPR), a company with a market capitalization of $65.12 million, has reduced its liabilities by $7.5 million through agreements with selected lenders and suppliers who have accepted company shares instead of cash payments, according to a press release statement issued Tuesday.

The company reported that the issued ordinary shares are subject to lock-up conditions. Additionally, VivoPower’s directors have elected to receive shares in lieu of certain board fees and costs, with limited exceptions for shares that can be sold to cover resulting tax liabilities. According to InvestingPro data, the company’s current ratio of 0.3 indicates potential liquidity challenges, with short-term obligations exceeding liquid assets.

VivoPower stated it is ahead of schedule on its commitment to reduce and retire its debts. The company disclosed that the unaudited balance of the principal component of its AWN shareholder loan stood at $28.8 million as of June 30, 2025, with a retirement program already in progress. While the company maintains impressive gross profit margins of nearly 75%, InvestingPro analysis suggests the stock is currently trading above its Fair Value.

"This initiative reflects VivoPower’s long-term commitment to strengthening its balance sheet and optimizing its capital structure," the company said in its statement, noting that execution remains subject to approval from independent directors and available liquidity.

VivoPower International, listed on Nasdaq since 2016, described itself as undergoing a strategic transformation to become "the world’s first XRP-focused digital asset enterprise." The company currently operates two business units: Tembo, focused on electric solutions for customized fleet applications, and Caret Digital, which develops use cases for renewable power including digital asset mining.

In other recent news, VivoPower International PLC has made significant strides in its financial and strategic initiatives. The company announced the completion of the first phase of a $121 million investment round, securing $60.5 million in gross proceeds. This investment, led by Prince Abdulaziz bin Turki bin Talal Al Saud and a group of non-U.S. investors, marks a crucial step in VivoPower’s capital-raising efforts. Additionally, VivoPower has regained compliance with Nasdaq’s minimum stockholders’ equity requirement, reporting a preliminary pro forma equity of approximately $20 million as of May 31, 2025, after previously facing a $40.5 million deficit.

The company also set July 9, 2025, as the record date for the spin-off of its subsidiary, Caret Digital Limited. Shareholders will receive five shares of Caret Digital for each VivoPower share held, with the spin-off planned as a direct NASDAQ IPO targeting a market capitalization of $308 million. Furthermore, VivoPower has initiated a shareholder debt principal reduction plan with AWN Holdings, aiming to retire the $28.8 million loan, subject to board approval and liquidity. These developments indicate VivoPower’s ongoing efforts to strengthen its financial position and expand its market presence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.