VivoPower Strengthens Balance Sheet, Further Reduces Debt by US$7.5 Million
VivoPower International (Nasdaq: VVPR) has announced a significant debt reduction initiative, cutting liabilities by $7.5 million through share-for-debt exchanges with selected lenders and suppliers. The company's directors have also agreed to receive shares instead of certain board fees, subject to lock-up conditions.
As of June 30, 2025, the unaudited principal balance of the AWN shareholder loan stood at $28.8 million. The company is progressing ahead of schedule on its commitment to retire all debts, including the full AWN shareholder loan, as part of its strategy to strengthen its balance sheet and optimize capital structure.
VivoPower International (Nasdaq: VVPR) ha annunciato un'importante iniziativa di riduzione del debito, diminuendo le passività di 7,5 milioni di dollari tramite scambi di azioni contro debiti con alcuni finanziatori e fornitori selezionati. I membri del consiglio di amministrazione hanno inoltre accettato di ricevere azioni in sostituzione di alcune commissioni di consiglio, soggette a condizioni di lock-up.
Al 30 giugno 2025, il saldo principale non revisionato del prestito azionario AWN ammontava a 28,8 milioni di dollari. L'azienda sta procedendo in anticipo rispetto ai tempi previsti per il suo impegno di estinguere tutti i debiti, incluso il prestito azionario AWN, come parte della strategia per rafforzare il bilancio e ottimizzare la struttura del capitale.
VivoPower International (Nasdaq: VVPR) ha anunciado una importante iniciativa para reducir su deuda, disminuyendo pasivos en 7,5 millones de dólares mediante intercambios de acciones por deuda con ciertos prestamistas y proveedores seleccionados. Los directores de la compañía también han acordado recibir acciones en lugar de algunas tarifas del consejo, sujetas a condiciones de bloqueo.
Al 30 de junio de 2025, el saldo principal no auditado del préstamo accionarial AWN era de 28,8 millones de dólares. La empresa avanza antes de lo previsto en su compromiso de liquidar todas las deudas, incluido el préstamo accionarial completo de AWN, como parte de su estrategia para fortalecer su balance y optimizar la estructura de capital.
VivoPower International (나스닥: VVPR)는 선택된 대출자 및 공급업체와의 주식 대 채무 교환을 통해 750만 달러의 부채를 감축하는 중요한 부채 축소 계획을 발표했습니다. 회사 이사들은 또한 특정 이사회 수수료 대신 주식을 받기로 합의했으며, 이는 락업 조건이 적용됩니다.
2025년 6월 30일 기준으로 AWN 주주 대출의 감사되지 않은 원금 잔액은 2880만 달러였습니다. 회사는 재무구조를 강화하고 자본 구조를 최적화하기 위한 전략의 일환으로 모든 부채, 포함하여 AWN 주주 대출 전액을 상환하겠다는 약속을 예정보다 앞서 진행 중입니다.
VivoPower International (Nasdaq : VVPR) a annoncé une importante initiative de réduction de dette, réduisant ses passifs de 7,5 millions de dollars grâce à des échanges d’actions contre dettes avec certains prêteurs et fournisseurs sélectionnés. Les administrateurs de la société ont également accepté de recevoir des actions en lieu et place de certains honoraires du conseil, sous réserve de conditions de blocage.
Au 30 juin 2025, le solde principal non audité du prêt actionnaire AWN s’élevait à 28,8 millions de dollars. L’entreprise progresse plus rapidement que prévu dans son engagement à rembourser toutes ses dettes, y compris le prêt actionnaire AWN complet, dans le cadre de sa stratégie visant à renforcer son bilan et optimiser sa structure de capital.
VivoPower International (Nasdaq: VVPR) hat eine bedeutende Initiative zur Schuldenreduzierung angekündigt und Verbindlichkeiten um 7,5 Millionen US-Dollar durch Aktientausch gegen Schulden mit ausgewählten Kreditgebern und Lieferanten reduziert. Die Direktoren des Unternehmens haben außerdem zugestimmt, bestimmte Vorstandsvergütungen in Form von Aktien zu erhalten, vorbehaltlich von Sperrfristen.
Zum 30. Juni 2025 belief sich der ungeprüfte Hauptsaldo des AWN-Aktionärsdarlehens auf 28,8 Millionen US-Dollar. Das Unternehmen liegt mit seinem Ziel, alle Schulden einschließlich des vollständigen AWN-Aktionärsdarlehens zurückzuzahlen, im Zeitplan voraus, um die Bilanz zu stärken und die Kapitalstruktur zu optimieren.
- Reduced company liabilities by $7.5 million through debt-to-equity conversion
- Directors aligned with shareholders by accepting shares instead of fees
- Progressing ahead of schedule on debt reduction initiatives
- Strengthening balance sheet without immediate cash outlay
- Potential dilution for existing shareholders due to new share issuance
- Significant debt remains with $28.8 million in AWN shareholder loan
- Share issuance subject to lock-up conditions
- Debt retirement program dependent on sufficient liquidity
Insights
VivoPower's conversion of $7.5M debt to equity improves financial flexibility while significantly diluting shareholders.
VivoPower has executed a $7.5 million debt-to-equity conversion, convincing selected creditors and board members to accept ordinary shares instead of cash payments. This financial engineering move immediately strengthens the balance sheet by reducing liabilities without depleting cash reserves.
The implemented lock-up provisions on these newly issued shares are strategically important as they prevent immediate selling pressure on the stock price. Only a small portion of the directors' shares can be sold under SEC Rule 10b5-1 plans, specifically to cover resulting tax obligations.
The company is also tackling its largest debt obligation - a $28.8 million shareholder loan from AWN as of June 30, 2025. Management indicates this retirement program is progressing ahead of schedule, suggesting operational cash flow may be exceeding internal projections.
While this transaction improves VivoPower's debt-to-equity ratio and preserves cash for growth initiatives, it comes at the cost of equity dilution for existing shareholders. The conversion price relative to market value will determine the magnitude of this dilution effect.
This restructuring signals management's confidence in future operational performance while addressing near-term liquidity challenges. The requirement for independent director approval of further debt retirement suggests appropriate governance guardrails are in place, though the note about "availability of sufficient liquidity" indicates cash flow remains a critical constraint in their financial strategy.
Selected lenders and suppliers have elected to take VivoPower ordinary shares in lieu of fiat currency
Directors have also elected to receive VivoPower ordinary shares for certain board fees
VivoPower is progressing ahead of schedule on its commitment to reduce and retire its debts
LONDON, July 22, 2025 (GLOBE NEWSWIRE) -- VivoPower International PLC (Nasdaq: VVPR) (“VivoPower” or the “Company”) announced today that it has further reduced its liabilities by negotiating with selected lenders and suppliers to the Company to exchange monies outstanding for VVPR ordinary shares in line with recent offer issue prices. Ordinary shares issued are, however, subject to lock-up conditions.
In addition, directors of the Company have elected to receive shares in lieu of certain directors’ fees and costs. These shares will be subject to lock-up conditions, except for a limited percentage that, pursuant to SEC rule 10b5-1, can be programmatically sold by the nominated broker to cover for consequential tax liabilities for the directors.
These initiatives together have the effect of further improving the Company’s balance sheet by an aggregate of US
As stated in a previous announcement, the Company’s objective is to retire its debts, including the AWN shareholder loan in full. The unaudited balance of the principal component of the AWN shareholder loan was
This initiative reflects VivoPower’s long-term commitment to strengthening its balance sheet and optimizing its capital structure, while ensuring adequate financial capacity to support its transformational growth strategies. Execution of this objective remains subject to ongoing approval from the Company’s independent directors and the availability of sufficient liquidity.
About VivoPower
VivoPower International PLC (NASDAQ: VVPR) is undergoing a strategic transformation into the world’s first XRP-focused digital asset enterprise. The Company’s new direction centers on the acquisition, management, and long-term holding of XRP digital assets as part of a diversified digital treasury strategy. Through this shift, VivoPower aims to contribute to the growth and utility of the XRP Ledger (XRPL) by supporting decentralized finance (DeFi) infrastructure and real-world blockchain applications.
Originally founded in 2014 and listed on Nasdaq since 2016, VivoPower operates with a global footprint spanning the United Kingdom, Australia, North America, Europe, the Middle East, and Southeast Asia. An award-winning global sustainable energy solutions B Corporation, VivoPower has two business units, Tembo and Caret Digital. Tembo is focused on electric solutions for off-road and on-road customized and ruggedized fleet applications as well as ancillary financing, charging, battery and microgrids solutions. Caret Digital is a power-to-x business focused on the highest and best use cases for renewable power, including digital asset mining.
Forward-Looking Statements
This communication includes certain statements that may constitute “forward-looking statements” for purposes of the U.S. federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterisations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the achievement of performance hurdles, or the benefits of the events or transactions described in this communication and the expected returns therefrom. These statements are based on VivoPower’s management’s current expectations or beliefs and are subject to risk, uncertainty, and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of VivoPower’s business. These risks, uncertainties and contingencies include changes in business conditions, fluctuations in customer demand, changes in accounting interpretations, management of rapid growth, intensity of competition from other providers of products and services, changes in general economic conditions, geopolitical events and regulatory changes, and other factors set forth in VivoPower’s filings with the United States Securities and Exchange Commission. There can be no assurances that VivoPower will continue to comply with all of NASDAQ’s Listing Rules at all times, given inherent uncertainty in business conditions and financial markets. The information set forth herein should be read in light of such risks. VivoPower is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of new information, future events, changes in assumptions or otherwise. .
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FAQ
How much debt did VivoPower (VVPR) reduce in July 2025?
What is the current balance of VivoPower's AWN shareholder loan?
How are VivoPower's directors participating in the debt reduction plan?
What restrictions apply to the newly issued VivoPower shares?
What is VivoPower's strategy for debt management?
