VivoPower decides to close F-1 offering, after successfully raising $4m in gross proceeds from institutional investors

Rhea-AI Summary

VivoPower International PLC (NASDAQ: VVPR) has announced the closure of its F-1 offering after successfully raising $4 million in gross proceeds from institutional investors. The company issued an aggregate of 3,200,000 Ordinary Shares, with the offering terminating after market on September 27, 2024.

The funds will be used to reduce debt and finance inventory for customer orders. VivoPower has transitioned to a capital light business model, leveraging its strategic supply chain across Asia, which significantly reduces its funding requirements. This shift eliminates the need for building out assembly and manufacturing facilities.

Chardan acted as the sole placement agent for this offering. The securities were offered through a registration statement on Form F-1, which was declared effective on August 29, 2024, with the final prospectus filed on September 19, 2024.

Positive

• Successfully raised $4 million in gross proceeds from institutional investors
• Transition to a capital light business model reduces funding requirements
• Funds will be used to reduce debt and finance inventory for customer orders

Negative

• Issuance of 3,200,000 Ordinary Shares may lead to dilution for existing shareholders

Insights

Financial Analyst

The closure of VivoPower's F-1 offering with $4 million in gross proceeds is a significant development for this microcap company. With a market cap of just over $5 million, this capital raise represents a substantial influx of funds, nearly doubling the company's market value.

The stated use of proceeds is encouraging: debt reduction and inventory funding for customer orders. This suggests the company is focusing on strengthening its balance sheet and meeting existing demand. The transition to a capital-light business model, leveraging Asian supply chains instead of building out manufacturing facilities, is a strategic move that could improve margins and reduce capital expenditure needs.

However, investors should note that the 3,200,000 new shares issued will likely result in significant dilution for existing shareholders. The impact on earnings per share and voting power should be carefully considered. While the capital raise provides a financial lifeline, the company's ability to achieve profitability and growth with this new strategy will be important for long-term viability.

Market Research Analyst

VivoPower's strategic pivot to a capital-light model in the sustainable energy solutions sector is noteworthy. This shift aligns with broader industry trends towards flexibility and reduced fixed costs. By leveraging Asian supply chains, the company may be better positioned to compete on price and adapt to market demands quickly.

The successful raise of $4 million from institutional investors signals some level of confidence in VivoPower's new direction. However, the fact that the offering was closed after raising this amount, rather than continuing to its full potential, may indicate investor appetite or a strategic decision to minimize dilution.

The company's focus on fulfilling existing customer orders is positive, suggesting there's demand for their products. Yet, the need for additional funding to meet these orders raises questions about the company's working capital management and cash flow. Investors should monitor VivoPower's ability to convert this capital into revenue and, ultimately, profitability in the coming quarters.

Issue of common stock only

Funds will be used to reduce debt and fund inventory for customer orders

Transition to capital light business model significantly reduces funding requirements

LONDON, Sept. 30, 2024 (GLOBE NEWSWIRE) -- VivoPower International PLC (NASDAQ: VVPR) ("VivoPower"), a global sustainable energy solutions company, is pleased to announce it has closed its F-1 offering, after the issuance of an aggregate of 3,200,000 Ordinary Shares to institutional investors. The offering was terminated and closed after market on September 27, 2024.

The offering provides the Company with approximately $4 million in gross proceeds, which will be used for reducing debt and to fund inventory for customer orders. With the Company now having transitioned to a capital light business model leveraging its strategic supply chain across Asia, there is no longer a requirement for it to build out assembly and manufacturing facilities.

Chardan acted as the sole placement agent in connection with this offering.

The securities described above were offered pursuant to a registration statement on Form F-1, (Registration No. 333-281065), initially filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 26, 2024 (as amended and supplemented, the “Registration Statement”). The Registration Statement was declared effective on August 29, 2024. The final prospectus was filed on September 19, 2024. The documents relating to this Offering, including the Registration Statement and the final prospectus, are available on the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such jurisdiction.

About VivoPower

Established in 2014 and listed on Nasdaq since 2016, VivoPower is an award-winning global sustainable energy solutions B Corporation company focused on electric solutions for off-road and on-road customised and ruggedised fleet applications as well as ancillary financing, charging, battery and microgrids solutions.

VivoPower’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 covering Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.

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. 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
shareholders@vivopower.com

FAQ

How much did VivoPower (VVPR) raise in its F-1 offering?

VivoPower (VVPR) raised approximately $4 million in gross proceeds from its F-1 offering.

When did VivoPower (VVPR) close its F-1 offering?

VivoPower (VVPR) closed its F-1 offering after market on September 27, 2024.

How will VivoPower (VVPR) use the funds raised from the F-1 offering?

VivoPower (VVPR) will use the funds to reduce debt and finance inventory for customer orders.

What business model has VivoPower (VVPR) transitioned to?

VivoPower (VVPR) has transitioned to a capital light business model, leveraging its strategic supply chain across Asia.