Following the disclosure of a notable update concerning a merger deal involving its subsidiary, VivoPower International PLC (NASDAQ: VVPR) witnessed a significant rise in its shares on the US stock charts.
Extension of Merger Agreement
VivoPower's electric vehicle subsidiary, Tembo e-LV B.V., announced a one-month extension of its exclusive heads of agreement with Nasdaq-listed Cactus Acquisition Corporation I, extending the deadline to July 31, 2024. This extension aims to provide additional time to finalize the definitive business combination agreement related to the proposed transaction, as well as to secure an independent fairness opinion. Tembo is actively negotiating with Cactus to conclude the definitive business combination agreement.
Sale of Non-Core Business Unit
In a strategic move, VivoPower recently completed the sale of its non-core business unit, Kenshaw Electrical, to ARA Group Limited, a leading diversified industrial services group based in Australia. This follows the April 29 announcement of a definitive asset sale agreement with ARA, with the expected completion date of July 1.
Expansion of Electric Vehicle Offerings
VivoPower has secured a minimum order of 200 committed Tembo Tuskers, its fully electric pickup utility vehicle, for delivery to customers and partners in Australia and New Zealand by February 2026. This follows the impressive sales of pickup trucks in Australia in May 2024, amounting to approximately US$700 million, and heightened interest at a leading Australian mining-focused trade show.
The Tembo Tuskers are available in both left-hand and right-hand drive configurations, with single and dual cab options. They boast a base range of 330 kilometers, a payload capacity of 1 ton, and an unbraked towing capacity of 750 kilograms. Notably, they are priced 15% below other comparable electric utility vehicles in the launch markets of Australia and New Zealand.
The initial order of Tembo Tuskers is being prepared for delivery to partners and customers in Australia, with full on-road homologation expected by July 2024. Tembo is also seeking to expedite its strategy of introducing the Tuskers to additional markets, including the United Arab Emirates, Africa, Europe, Asia, and Canada.