VivoPower regains Nasdaq compliance after $60.5 million fundraise

Published 01/07/2025, 20:58
VivoPower regains Nasdaq compliance after $60.5 million fundraise

LONDON - VivoPower International PLC (NASDAQ:VVPR), currently valued at $40.45 million, has regained compliance with Nasdaq’s minimum stockholders’ equity requirement following the first phase of its private placement, the company announced Tuesday.

The digital asset enterprise received confirmation from Nasdaq that it now meets Listing Rule 5550(b)(1), which requires companies to maintain at least $2.5 million in stockholders’ equity to remain listed on the Nasdaq Capital Market.

VivoPower had received a non-compliance notification from Nasdaq on January 3, 2025. The company has since completed the initial phase of its previously announced $121 million private placement of ordinary shares, generating $60.5 million in gross proceeds.

Nasdaq will continue monitoring VivoPower’s compliance with the stockholders’ equity requirement. If the company fails to demonstrate compliance in its next periodic report for the year ending June 30, 2025, it could face potential delisting, though it would have the opportunity to appeal such a decision.

VivoPower, listed on Nasdaq since 2016, describes itself as undergoing a strategic transformation to become an XRP-focused digital asset enterprise. The company aims to acquire, manage and hold XRP digital assets as part of its treasury strategy while supporting the XRP Ledger’s growth. The stock has shown remarkable performance, gaining over 200% in the past six months, though InvestingPro analysis suggests the company is currently overvalued based on its Fair Value calculations. Get access to 12 additional exclusive ProTips and comprehensive financial metrics with an InvestingPro subscription.

The company operates globally with two business units: Tembo, which focuses on electric solutions for customized fleet applications, and Caret Digital, which develops power-to-x business cases for renewable power including digital asset mining.

The information in this article is based on a company press release statement.

In other recent news, VivoPower International PLC announced it believes it has regained compliance with Nasdaq’s minimum stockholders’ equity requirement, reporting a preliminary pro forma equity of approximately $20 million. This development follows the binding close of the first phase of a private placement, generating $60.5 million in gross proceeds, as part of a larger $121 million investment round led by Prince Abdulaziz bin Turki bin Talal Al Saud. Additionally, VivoPower has set July 9, 2025, as the record date for shareholders to receive a special dividend related to the spin-off of its subsidiary, Caret Digital Limited. Shareholders will receive five Caret Digital shares for each VivoPower share held, with the spin-off planned as a direct NASDAQ IPO targeting a market capitalization of $308 million.

In further developments, VivoPower announced the appointment of David Mansfield as Chief Financial Officer and Keith Loose as Chief Technology Officer, alongside the addition of Suneet Wadhwa to its Board of Advisors. The company is also in negotiations with potential strategic investors from the Middle East and Asia to raise up to $50 million to support Caret Digital’s growth initiatives. VivoPower is assembling a dedicated management team for Caret Digital, with support from Adam Traidman, Chairman of VivoPower’s Board of Advisors. The company noted that the proposed spin-off of Caret Digital remains subject to market conditions, with no assurance it will be completed on the terms described.

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