VivoPower Strengthens Balance Sheet, Further Reduces Debt by US$7.5 Million
Rhea-AI Summary
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.
Positive
- 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
Negative
- 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
News Market Reaction – VVPR
On the day this news was published, VVPR gained 6.37%, reflecting a notable positive market reaction. Argus tracked a peak move of +16.7% during that session. Argus tracked a trough of -13.8% from its starting point during tracking. Our momentum scanner triggered 33 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $4M to the company's valuation, bringing the market cap to $73M at that time.
Data tracked by StockTitan Argus on the day of publication.
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. .
Contact
Shareholder Enquiries
media@vivopower.com
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?
