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Investing.com -- VivoPower International PLC (NASDAQ:VVPR) stock tumbled 16.2% after the company announced it had reduced its liabilities by $7.5 million through issuing shares to lenders and suppliers.
The sustainable energy solutions provider said it negotiated with selected lenders and suppliers to exchange outstanding debts for ordinary shares, subject to lock-up conditions. Additionally, company directors elected to receive shares instead of certain fees and costs, with limited exceptions for tax liability purposes.
These initiatives are part of VivoPower’s stated objective to retire its debts completely, including a $28.8 million shareholder loan from AWN as of June 30, 2025. The company indicated that a retirement program for this loan has already begun after the balance date.
VivoPower described these actions as reflecting its "long-term commitment to strengthening its balance sheet and optimizing its capital structure," while maintaining financial capacity to support growth strategies. The company noted that execution of its debt retirement objective remains subject to approval from independent directors and sufficient liquidity availability.
The market’s negative reaction suggests investors may be concerned about potential dilution from the issuance of new shares, despite the reduction in the company’s debt burden.
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