Shares of VivoPower International PLC (NASDAQ: VVPR) have seen a significant increase on the US stock charts today, driven by an announcement regarding an equity move. As of the most recent current-market check, VVPR stock surged by 50.79%, reaching $3.84.
Amendment and Extension of Shareholder Loan Financing Agreement
Extension of Agreement with Cactus Acquisition Corp
Amendment and Extension of Shareholder Loan Financing Agreement
Today, VivoPower International announced that its independent directors have successfully negotiated an amendment and extension to its $34 million shareholder loan financing agreement with the independent directors of its major shareholder, AWN Holdings Limited ("AWN")
Under the revised terms, VivoPower has consolidated all of its shareholder loans at the VivoPower International PLC level and reclassified all outstanding loans to non-current status, thereby enhancing the company's balance sheet profile.
AWN has also been granted an option to acquire 1,150,000 Tembo shares (the "Options") from VivoPower following its business combination with Cactus Acquisition Corp, at an exercise price of $1.35 per share. This arrangement supersedes a previous agreement to issue warrants on VivoPower International shares.
The exercise price reflects the valuation agreed upon by a private investment office backed by a member of the ruling Al Maktoum family of Dubai, as announced in June 2023, considering AWN's ongoing financial support since 2017.
The underlying shares to the Option are expected to constitute less than 1.3% of the total estimated shares in the newly listed Tembo post-deSPAC and will be subject to a lock-up period of at least six months.
Extension of Agreement with Cactus Acquisition Corp
In another recent development, 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 Corp to July 31, 2024.
The purpose of this extension is to give more time for completing the final business combination agreement and securing an impartial fairness assessment. Tembo continues to engage in negotiations with Cactus to conclude the definitive business combination agreement.