VIVOPOWER ANNOUNCES FOLLOW-ON STRATEGIC DIRECT INVESTMENT IN TEMBO AT US$120M PRE-MONEY VALUATION
VivoPower International PLC (Nasdaq: VVPR) announces that its subsidiary Tembo e-LV B.V. has secured a further follow-on strategic direct equity investment of US$5 million, at a pre-money valuation of US$120 million, from a UAE based private investment office backed by a member of the ruling Al Maktoum family of Dubai. This investment is part of an initial US$2.5 million investment made in June 2023, with an option to increase investment to up to US$10 million based on meeting certain milestones. VivoPower will continue to retain its majority stake in Tembo.
The additional investment of US$5 million into Tembo e-LV B.V. by a UAE based private investment office indicates a strong vote of confidence in the company's potential and growth trajectory. The pre-money valuation of US$120 million suggests that Tembo has a significant market opportunity and is performing well against its strategic objectives. Given the investor's option to further increase the investment to US$10 million, it's clear that the relationship between the investor and Tembo could be pivotal for future expansions and product development. Stakeholders should monitor the progress of this partnership closely, as it may lead to increased market share and enhanced competitive positioning for Tembo.
The strategic direct equity investment into Tembo, a subsidiary of VivoPower, strengthens the company's financial position and provides additional capital to fuel its growth initiatives. The investment's impact on VivoPower's balance sheet could potentially improve its financial ratios, making the company more attractive to other investors and lenders. The follow-on investment mechanism, based on milestone achievements, aligns investor interests with company performance, ensuring that funding is contingent upon Tembo meeting predefined targets. This alignment is a positive sign for shareholders, as it indicates a performance-oriented investment approach that could lead to enhanced shareholder value over time.
Tembo's focus on electric light vehicles (e-LV) places it at the forefront of a rapidly growing segment within the automotive industry. The electric vehicle (EV) market is expanding, driven by increasing environmental concerns and supportive government policies. The additional investment into Tembo suggests that its product offerings are well-received in the market and there is anticipation of continued demand for e-LVs. This investment could enable Tembo to accelerate its research and development efforts, expand its production capabilities and potentially increase its market penetration, especially in regions where the transition to electric mobility is gaining momentum.
01/11/2024 - 09:25 AM
Investment secured from private investment office backed by member of ruling Al Maktoum family of Dubai
Initial US$2.5 million investment made in June 2023 included an option to increase investment to up to US$10 million based on meeting certain milestones
Tembo has now met milestones to qualify for additional follow-on investment of US$5 million , for an aggregate total investment to date of US$7.5 million
LONDON, Jan. 11, 2024 (GLOBE NEWSWIRE) -- VivoPower International PLC (Nasdaq: VVPR, “VivoPower” or the “Company”) is pleased to announce that its subsidiary Tembo e-LV B.V. (“Tembo”) has met milestones to obtain a further follow-on strategic direct equity investment of US$5 million into Tembo, at a pre-money valuation of US$120 million .
This is pursuant to a commitment received in June 2023 from a UAE based private investment office backed by a member of the ruling Al Maktoum family of Dubai. The investor, under the agreement terms, retains the option to increase its cumulative investment in subsequent closings, up to US$10 million .
VivoPower will continue to retain its majority stake in Tembo.
About VivoPower
VivoPower is an award-winning global sustainable energy solutions B Corporation company focused on electric solutions for customised and ruggedised fleet applications, battery and microgrids, solar and critical power technology and services. The Company’s core purpose is to provide its customers with turnkey decarbonisation solutions that enable them to move toward net-zero carbon status. VivoPower has operations and personnel in Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.
About Tembo
Tembo electric utility vehicles (EUVs) are the premier 100% electric solution for ruggedised and/or customised applications for fleet owners in the mining, agriculture, energy utilities, defence, police, government, humanitarian, and game safari industries. Tembo provides safe, high-performance off-road and on-road electric utility vehicles that meet exacting standards of safety, reliability, and quality. Its core purpose is to provide safe and reliable electrification solutions for utility vehicle fleet owners globally, helping perpetuate useful life, reduce costs, maximise return on assets, meet ESG goals and activate the circular economy. Tembo is a subsidiary of the NASDAQ listed B Corporation, VivoPower International PLC.
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, the anticipated impact that the events or transactions described in this communication may have on the Company 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, expectations on funding from investors, and other factors set forth in VivoPower’s filings with the United States Securities and Exchange Commission. 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.
What is the name of the company mentioned in the press release and its ticker symbol?
The company mentioned is VivoPower International PLC with the ticker symbol VVPR.
What is the amount of the follow-on strategic direct equity investment secured by Tembo e-LV B.V.?
Tembo has secured a further follow-on strategic direct equity investment of US$5 million.
What is the pre-money valuation of Tembo e-LV B.V. after the latest investment?
The pre-money valuation of Tembo e-LV B.V. after the latest investment is US$120 million.
Who made the initial investment in Tembo e-LV B.V. in June 2023?
The initial investment was made by a UAE based private investment office backed by a member of the ruling Al Maktoum family of Dubai.
What is the option retained by the investor under the agreement terms?
The investor retains the option to increase its cumulative investment in subsequent closings, up to US$10 million.
