VivoPower secures $121 million in private capital raise

LONDON - VivoPower International PLC (NASDAQ:VVPR), whose stock has surged over 420% in the past six months according to InvestingPro data, announced today that it has successfully completed a private capital raise of approximately $121 million, with the price of shares set at $6.05 each, marginally above the last market close. The capital raise was led by Prince Abdulaziz bin Turki Abdulaziz Al Saud of Saudi Arabia, and included investments from Adam Traidman, former Ripple board member, who also joins as Chairman of the Board of Advisors.

The funds from the raise are earmarked for the purchase and holding of XRP, a digital asset, as part of VivoPower’s strategy to build a treasury focused on digital assets and decentralized finance (DeFi). This move is believed to make VivoPower the first public company globally to adopt an XRP-centric treasury approach. InvestingPro data reveals the company’s current financial health score is weak, with a concerning current ratio of 0.3, indicating potential liquidity challenges that this capital raise might help address. Additionally, the funds will be utilized for debt reduction and general corporate purposes.

VivoPower’s transition into a digital asset treasury company aligns with its plans to spin off its operating subsidiaries, Tembo and Caret Digital, with the objective of completing these spin-offs by the end of the third quarter of 2025. The company is also in ongoing discussions with Energi Holdings Limited regarding a takeover proposal, now with a revised focus on the Tembo business.

The capital raise is subject to customary closing conditions, including shareholder approval, expected to be sought at a meeting around June 18, 2025. Chardan acted as the sole placement agent for the offering, which was conducted in compliance with Regulation S under the Securities Act of 1933, meaning the securities were offered to non-U.S. persons.

Prince Abdulaziz expressed confidence in VivoPower’s strategic focus on XRP, citing the timing as appropriate for digital assets and blockchain technology to be adopted in the Kingdom of Saudi Arabia. Kevin Chin, VivoPower’s Executive Chairman, highlighted the alignment of vision among the investors and the potential for XRP blockchain solutions to address international payment frictions.

Adam Traidman praised VivoPower’s forward-thinking strategy and expressed his eagerness to contribute to the company’s scaling efforts in the XRP space. According to InvestingPro, which offers 15+ additional insights about VVPR, the company maintains impressive gross profit margins of nearly 75%, though it faces challenges with cash burn and debt management that will need careful attention as it executes this strategic pivot.

This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction.

In other recent news, VivoPower International PLC has secured an $85 million deal with Saudi Arabian firm Green Watt to supply 1,600 electric utility vehicle units over five years through its subsidiary, Tembo e-LV. This agreement aligns with VivoPower’s commitment to sustainable energy solutions and supports Saudi Arabia’s carbon reduction initiatives. In a separate development, VivoPower is advancing its business combination with Tembo, facilitated by Cactus Acquisition Corporation, with an enterprise valuation of $904 million. Meanwhile, Energi Holdings Limited has revised its takeover offer for VivoPower, increasing the enterprise value to $180 million. This revised proposal aims to make Energi the majority shareholder by purchasing 80% of VivoPower’s unaffiliated free float shares. VivoPower has also agreed to an exclusivity period for Energi to conduct due diligence. Additionally, VivoPower’s subsidiary, Tembo e-LV, has been selected by The Safari Collection to provide electric vehicle conversion kits for eco-friendly safaris in Kenya. These developments reflect VivoPower’s ongoing efforts to expand its footprint in sustainable energy solutions across various regions.

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