As VivoPower International PLC (NASDAQ: VVPR) moves into advanced talks about a possible purchase, the company’s shares have experienced a notable spike. The value of VVPR stock as of the most recent check was $4.25, representing a remarkable 88.06% rise.
Negotiations with Energi Holdings
High-level bilateral talks between VivoPower and Energi Holdings Limited (“Energi”) over an unsolicited, non-binding purchase offer have been confirmed. Energi is a well-known energy solutions company with its headquarters in Abu Dhabi. It was established in 2014 and makes about $1 billion a year.
VVPR has operations throughout the Middle East, Africa, South Asia, Europe, and Southeast Asia, among other places. Targeting all non-affiliated free float shares of VivoPower at an enterprise valuation of US$120 million, the proposed purchase is set up as an all-cash offer.
However, due diligence is still required before the acquisition can be finalized. By April 2, 2025, both parties have agreed to complete the pricing, terms, and conditions negotiations. Investors have been reassured by its board that further information would be released when it is ready.
Spin-Off Strategy for Caret Digital
VivoPower has also revealed plans to spin out Caret LLC (“Caret Digital”), a subsidiary, through a direct listing on the Nasdaq Stock Market, concurrent with its takeover talks. The company has engaged financial advisors to facilitate the process.
The decision to pursue a direct listing over a reverse merger is driven by considerations of cost-efficiency and expedited execution. Additionally, this approach enables the seamless distribution of dividend shares to VVPR shareholders while avoiding the regulatory complexities associated with a reverse listing via a non-Nasdaq entity.
Under the proposed terms, shareholders of VivoPower at a designated future record date will be entitled to receive five (5) shares of Caret Digital for each share of VVPR held, with an implied market capitalization of US$250 million.
Focus on Cryptocurrency Mining and Bitcoin Optimization
Caret Digital’s strategic direction will center on cryptocurrency mining, specifically Dogecoin (DOGE). VVPR has outlined plans to leverage DOGE mining economics by converting mined DOGE into Bitcoin (BTC) at a discount.
This approach aims to optimize BTC yields and enhance overall returns. In order to support its growth trajectory, Caret Digital plans to seek $10 million from strategic investors as part of this strategy.