VivoPower reports regaining Nasdaq compliance with $20 million equity

Published 26/06/2025, 21:04
VivoPower reports regaining Nasdaq compliance with $20 million equity

LONDON - VivoPower International PLC (NASDAQ:VVPR) announced Thursday it believes it 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. According to InvestingPro data, the company currently shows weak financial health metrics, with a concerning current ratio of 0.3 and rapid cash burn rate.

The company had received a notification from Nasdaq on January 3, 2025, indicating non-compliance with the $2.5 million minimum stockholders’ equity rule after reporting a $40.5 million deficit in its June 2024 financial statements. Nasdaq had granted VivoPower an extension until July 2, 2025, to regain compliance.

The improved financial position follows the binding close of the first phase of a private placement that generated $60.5 million in gross proceeds. This represents part of a larger $121 million investment round led by Prince Abdulaziz bin Turki bin Talal Al Saud and includes a consortium of non-U.S. investors under Regulation S of the U.S. Securities Act.

The private placement, priced at $6.05 per share, was announced on May 28 alongside the company’s new XRP-focused digital asset treasury strategy.

VivoPower noted that Nasdaq will continue monitoring its compliance with the stockholders’ equity requirement, and the company could face delisting if future periodic reports fail to demonstrate compliance.

The financial information provided is preliminary and unaudited, subject to revision during the company’s financial closing procedures for the year ending June 30, 2025, according to the press release statement.

VivoPower, listed on Nasdaq since 2016, describes itself as undergoing a strategic transformation into an XRP-focused digital asset enterprise while maintaining its sustainable energy solutions business units, Tembo and Caret Digital.

In other recent news, VivoPower International PLC has set a record date of July 9, 2025, for shareholders to receive shares in its subsidiary, Caret Digital, as part of a planned NASDAQ spin-off. Shareholders will receive five Caret Digital shares for each VivoPower share they hold, with the spin-off aiming for a market capitalization of $308 million. Additionally, VivoPower has successfully completed the first phase of a $121 million investment round, raising $60.5 million, with the remaining investment pending shareholder approval. The funds are intended to support VivoPower’s strategic focus on Ripple and XRP treasury and decentralized finance solutions. In a move to enhance its digital strategy, VivoPower appointed David Mansfield as CFO and Keith Loose as CTO, while adding Suneet Wadhwa to its Board of Advisors. The company has also partnered with Flare Network to generate yield on its XRP holdings, marking a significant step in its XRP-centric treasury management. VivoPower is negotiating with strategic investors from the Middle East and Asia to raise up to $50 million for Caret Digital’s growth initiatives. The company continues to explore opportunities in digital asset mining, particularly DOGE cryptocurrency, which it plans to convert into XRP or BTC.

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