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VIVOPOWER ANNOUNCES FURTHER STRATEGIC DIRECT INVESTMENT IN TEMBO FROM EMIRATI INVESTMENT OFFICE

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VivoPower International PLC announces Tembo e-LV B.V. has secured a final follow-on investment of US$2.5 million, reaching a total investment of US$10 million. The investment comes from a private investment office backed by a member of the ruling Al Maktoum family of Dubai. Tembo has met all milestones for the investment, retaining VivoPower's majority stake.
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The investment completion by the private office of the Al Maktoum family into VivoPower's subsidiary Tembo e-LV B.V. signals strong confidence in the company's business model and growth prospects. The follow-on investment of US$2.5 million, part of a US$10 million commitment, showcases a successful milestone-based funding approach, which is often employed to mitigate investor risk by providing capital in tranches contingent upon the achievement of certain predefined objectives. This is a strategic move, as it aligns the interests of the investor with the company's performance. The pre-money valuation of US$120 million for Tembo, set prior to this final tranche, indicates a substantial valuation uplift for VivoPower's asset, which could be reflected in the company's overall market capitalization and investor sentiment.

The mention of Tembo's binding heads of agreement with CCTS, a NASDAQ listed SPAC, for a business combination at an indicative pre-money equity valuation of US$838m, is indicative of the high growth potential and market expectations surrounding the electric vehicle sector. The SPAC route for going public has gained popularity due to its speed and efficiency compared to traditional IPOs. However, the high valuation also suggests that the market is pricing in significant future growth, which carries inherent risks if the company does not perform as expected post-merger.

Tembo e-LV B.V.'s focus on the electric vehicle market is particularly relevant given the global shift towards sustainable transportation. The investment by a prominent family office not only provides financial backing but also potentially opens doors to the Middle Eastern market, which is actively diversifying away from oil dependency. This strategic partnership could enhance Tembo's market penetration and brand credibility in the region. Furthermore, the successful completion of funding milestones could be a positive signal to other potential investors, suggesting that the company is on track with its business plan and capable of meeting its targets.

It is important to note that the electric vehicle sector is highly competitive, with numerous players vying for market share. Tembo's strategic partnership with a SPAC could provide it with the necessary capital to scale operations, invest in technology and expand its market presence. However, investors should be aware of the competitive landscape and the challenges associated with scaling in a rapidly evolving industry.

Investment commitment secured from private investment office backed by member of ruling Al Maktoum family of Dubai

Initial US$7.5m investment milestones previously met as part of US$10 million commitment

Tembo has now met milestones to qualify for the final follow-on investment of US$2.5 million, for an aggregate total investment of US$10 million

LONDON, April 08, 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 now met all the milestones to obtain the final follow-on strategic direct equity investment 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, can exercise the option to increase its cumulative investment in subsequent closings, up to US$10 million based on milestones which have now all been met.

VivoPower will continue to retain its majority stake in Tembo. Tembo recently announced a binding heads of agreement to execute a business combination agreement with CCTS, a NASDAQ listed SPAC at an indicative pre money equity valuation of US$838m.

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.

 


FAQ

What is the total investment amount Tembo has secured?

Tembo has secured a total investment of US$10 million.

Who is the investor behind the investment in Tembo?

The investment comes from a private investment office backed by a member of the ruling Al Maktoum family of Dubai.

What is the pre-money valuation of Tembo for the final follow-on investment?

The final follow-on investment into Tembo is at a pre-money valuation of US$120 million.

What is the indicative pre-money equity valuation for the business combination agreement between Tembo and CCTS?

The indicative pre-money equity valuation for the business combination agreement between Tembo and CCTS is US$838 million.

VivoPower International PLC

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