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Tembo e-LV $838 Million SPAC IPO Set To Unlock Shareholder Value For VivoPower (NASDAQ:VVPR)

Published

7 months ago

on

–News Direct–

As the worlds shift to EVs gathers more pace and the market rebounds from short term demand weakness, one company that has attracted significant investor interest is VivoPower International PLC (NASDAQ:VVPR). The sustainable energy solutions company, which provides conversion kits containing all the parts needed to convert a vehicle from an internal combustion engine to electric, has seen its share price rise based on a number of tailwinds.

For starters, VivoPower subsidiary Tembo E-LV revealed that it would be going public by merging with Cactus Acquisition Corp. (NASDAQ:CCTS), a SPAC, in a deal with a pre-money indicative valuation of $838 million. CCTS will issue 83.8 million shares in exchange for Tembo shares at $10 per CCTS share.

In addition to that, a special dividend of a total of 16.76 million Tembo shares, or about 20% of the 83.8 million shares, will be distributed to VivoPower International PLC (NASDAQ:VVPR) shareholders, who will receive five Tembo Group shares for each VivoPower share held. According to the most recent quarterly filing, CCTS has $25 million in cash on its balance sheet.

If everything plays out as expected, then this deal would unlock massive value for VivoPower shareholders. That is because VivoPwer bought Tembo for about $7.1 million in cash back in 2021, and this deal values it at more than 120x. This deal has not only illustrated the leaderships commitment to increasing shareholder value but also the markets willingness to pay a premium for EV companies solving the EV problem in a different way.

Although VivoPower International PLC (NASDAQ:VVPR) stock has already rallied significantly, it is clear that there is still more room for upside. Just to recap, heres a simple breakdown of the deal and how it would translate to a higher share price for VivoPower shareholders.

  • VivoPower International PLC (NASDAQ:VVPR) shareholders get 5 Tembo shares worth $10 for every share held.

  • Assuming a conservative scenario where the IPO raises only 10% of $838 million, that would translate to at least $83.8 million in market cap for vivo power.

  • VivoPower has about 3.5 million shares outstanding, which would translate into a share price of roughly $23.

  • That means that VivoPower could make investors triple-digit returns once this deal closes, and that is without taking into account the dividend shares.

  • At $1 per dividend share, that would translate to an additional $5 per share held for VivoPower shareholders.

Ultimately, even if the Tembo share price upon IPO is only $1, that would imply that VVPR shares are worth $28, including the value of dividend shares.

To further illustrate the upside potential in the VivoPower International PLC (NASDAQ:VVPR) stock, consider this: The company recently received a $10 million direct investment from an Emirati based family office associated with the ruling family of Dubai, at a $120 million pre-money valuation. Based on this fact , the value per share of VVPR could be $40 per share.

Share buyback and restructuring

Another important tailwind that has contributed to sending VivoPower's share price higher is the company's recent announcement that its board had authorized a capital management strategy including a stock buyback program that would allow the company to purchase up to $5 million of its outstanding shares. These buybacks would be funded using the companys proceeds from the sale of businesses and asset divestitures, including spin-offs like the Caret business units portfolio. The Caret business units portfolio represents up to ten solar projects totaling 586 MW-DC at varying stages of development.

Last week, VivoPower International PLC (NASDAQ:VVPR) also announced that it entered into a definitive asset sale agreement for the sale of one of its non-core business units, Kenshaw Electrical, to ARA Group Limited, a leading diversified industrial services group based in Australia, for a total of A$5 million.

Exploding addressable markets

VVPR is well positioned to capitalize on the increasing demand for EVs in some of the fastest growing markets right now like southeast Asia, the middle east and Africa. According to Mordor Intelligence, the Middle East and Africa EV markets were valued at about $3.33 billion in 2024 and are expected to be worth $9.42 billion by 2029, representing a CAGR of 23.20%.

Tembos conversion kits have attracted substantial traction among consumers, as illustrated by the company securing a commitment of 5000+ kits and an order pipeline of 10,000+ in 2023. Those included an MOU in Jordan for 1,000 kits, opening a path to the Middle East, which is the largest Landcruiser market, and a definitive agreement in Kenya for 4,000 kits, providing entry into second-hand vehicle segments.

Furthermore, Tembo signed a definitive joint venture agreement with Francisco Motor Corporation to develop and supply electric utility vehicle electrification kits for a new generation of electric jeepneys (e-jeepneys) in the Philippines.

This is another significant growth opportunity, considering that the Electric Vehicle Association of the Philippines (EVAP) estimates that the cumulative sales of e-vehicles in the country will reach 6.6 million units by 2030, driven by favorable government policies. In fact, e-vehicles are now exempt from excise tax, and a recent Executive Order scrapped the tariff rates of completely built-up imported e-vehicles for five years to help them become more cost-competitive in the country.

Takeaway

Going forward, it's clear that VivoPower International PLC (NASDAQ:VVPR) has bright prospects ahead, as illustrated by the fact that according to a release May 6, executive chairman and CEO Kevin Chin again increased his individual shareholding in the company by adding an additional 100,000 shares (about 2.7% of the outstanding shares) to increase his shareholding to 13.5%, signaling his confidence in the company.

For more information, please visit https://vivopower.com/

Disclaimers: RazorPitch Inc. "RazorPitch" is not operated by a licensed broker, a dealer, or a registered investment adviser. This content is for informational purposes only and is not intended to be investment advice. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. RazorPitch has been retained by VivoPower International to assist in the production and distribution of content related VVPR. RazorPitch is responsible for the production and distribution of this content. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by RazorPitch or any third party service provider to buy or sell any securities or other financial instruments. All content in this article is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in this article constitutes professional and/or financial advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. RazorPitch is not a fiduciary by virtue of any persons use of or access to this content.

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View source version on newsdirect.com: https://newsdirect.com/news/tembo-e-lv-838-million-spac-ipo-set-to-unlock-shareholder-value-for-vivopower-nasdaq-vvpr-976288874

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Press Release

UVKXE Releases Anti-Scam Guide, Enhancing User Security Protections

Published

15 hours ago

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November 23, 2024

By

DENVER — Recently, the globally renowned cryptocurrency trading platform UVKXE has published its latest anti-scam guide to address the escalating threats of online scams, establishing a comprehensive protective barrier for users worldwide. The guide focuses on various scamming tactics prevalent in the cryptocurrency sector, highlighting what users should be aware of during transactions and asset management, while also providing effective preventive measures.

Kevin Anderson, CEO of UVKXE, noted: “As the cryptocurrency market continues to expand, more cybercriminals are turning their attention to cryptocurrency users, developing sophisticated scam techniques. As a well-known platform in the cryptocurrency trading field, UVKXE has a responsibility to help users identify and mitigate these potential risks. Through the release of this anti-scam guide, we aim to further enhance user awareness and safeguard their digital asset security.”

The guide outlines the common characteristics of these scams, such as phishing emails that typically use UVKXE or similar official-sounding names, along with forged logos and links, to deceive users into providing their login credentials and sensitive information. It also advises users to always choose official channels when downloading applications to avoid malicious software. Furthermore, UVKXE emphasizes that the platform will never proactively request users to provide sensitive information such as passwords or verification codes in any form.

In addition to the anti-scam guide, UVKXE will launch a series of interactive activities, utilizing community forums and video tutorials to educate users about safety knowledge and help them recognize and respond to potential threats. The UVKXE security team stated that these activities will not only provide real-time updates on scams but also offer users opportunities for direct communication and inquiries.

The investment in technology and education is reflected not only in the publication of the anti-scam guide but also in daily operations and maintenance. Kevin Anderson concluded: “Every protective measure and security technology implemented by UVKXE is designed to ensure the safety of user assets. In the future, we will continue to advance this mission, providing users with safer and more convenient cryptocurrency trading services.”

Media Contact:
Company Name: UVKXE CRYPTO TECH CO.,LTD.
Company website: https://www.uvkxe.co
Contact person’s full name: Mayang
Email id: mayang@uvkxe.co

Disclaimer: This content is provided by sponsor. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

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Press Release

UVKXE Clarification Statement: A Legally Compliant Trading Platform with International Accreditation

Published

15 hours ago

on

November 23, 2024

By

DENVER — Recently, the Securities Commission Malaysia (SC) published a list on its official website of cryptocurrency trading platforms that have not met its local registration requirements, mentioning UVKXE. UVKXE takes this matter seriously and wishes to clarify its credentials and compliance status to its users.

Global Compliance Credentials of UVKXE

UVKXE is committed to operating under legal and compliant principles, upholding a user-first core value. The platform has obtained several certifications from international authoritative regulatory bodies, including but not limited to:

U.S. MSB License
UVKXE has obtained the MSB license issued by the U.S. FinCEN. This certification represents the highest recognition by the U.S. government for financial service institutions, ensuring that UVKXE can legally conduct cryptocurrency-related business.

U.S. SEC License
As one of the few cryptocurrency trading platforms registered with the U.S. Securities and Exchange Commission (SEC), UVKXE complies with securities and investment-related legal regulations, providing users with a safer and more transparent investment environment.

Background on the Malaysian Public List

The list published by the Securities Commission Malaysia mainly targets trading platforms that have not met local registration requirements, such as Binance and Bursa Malaysia, rather than denying the platform legality. UVKXE has obtained multiple authoritative licenses internationally, and its compliance is beyond doubt. UVKXE is in communication with relevant departments to understand local specific regulations and to advance the registration process, ensuring compliance with local market requirements.

Commitment to Legal Compliance and User-Centric Values

UVKXE will use this event as an opportunity to further enhance its global compliance framework, actively adapting to regulatory environments in various countries, and providing users with more professional and diversified financial services. We sincerely thank all users for their trust and support! UVKXE promises that no matter where it operates, the platform will always adhere to the core philosophy of “user-first”, moving together with global users towards a safer, more open, and transparent new era of the digital economy.

Media Contact:
Company Name: UVKXE CRYPTO TECH CO.,LTD.
Company website: https://www.uvkxe.co
Contact person’s full name: Mayang
Email id: mayang@uvkxe.co

Disclaimer: This content is provided by sponsor. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

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Press Release

UVKXE Strengthens Security Strategy, Leading Innovations in Anti-Scam Technology for Crypto Platforms

Published

15 hours ago

on

November 23, 2024

By

DENVER — Recently, the globally recognized cryptocurrency trading platform UVKXE officially announced the completion of its latest security system upgrade. This upgrade significantly enhances the cybersecurity defenses of the platform and introduces cutting-edge anti-scam technologies. Through this technological update, UVKXE demonstrates its commitment to user asset security and proactive measures against potential future cyber threats.

Kevin Anderson, CEO of UVKXE, stated: “User trust is the foundation of UVKXE, and ensuring the security of user assets is always our top priority. This security system upgrade incorporates AI deep learning, real-time risk control, and efficient anomaly detection algorithms, aiming to create a safe and trustworthy trading environment for users. We will continue to optimize the security measures for user assets, ensuring that every user can trade confidently on UVKXE.”

The focus of this security system upgrade is primarily on anti-scam technologies. In response to the ever-evolving online threats and scam tactics in recent years, UVKXE has strengthened its multi-layered protective mechanisms, effectively enhancing the security and responsiveness of the system. The upgrade introduces AI-driven anti-scam technology, which intelligently analyzes user behavior through deep learning algorithms, allowing for rapid identification and isolation of suspected scamming activities. The AI anti-scam system can monitor and analyze large volumes of trading data in real time, immediately freezing any suspicious transactions or account activities to safeguard user assets.

Kevin Anderson further explained: “Traditional anti-scam methods often rely on post-event analysis, whereas the new system of UVKXE can identify risks promptly before incidents occur, taking immediate action to prevent losses.”

In terms of anomaly detection, the system of UVKXE combines the transaction histories, asset conditions, login locations, and other multidimensional data of users to accurately pinpoint potential security vulnerabilities. Through anomaly detection technology, each user login and transaction can be monitored in real time, with timely alerts prompting users to confirm actions, further enhancing the security of the platform.

Kevin Anderson concluded: “We hope every user can enjoy a secure trading experience on UVKXE. By continually optimizing our security strategies, we aim to provide a safer and more convenient cryptocurrency trading experience for our users.”

Media Contact:
Company Name: UVKXE CRYPTO TECH CO.,LTD.
Company website: https://www.uvkxe.co
Contact person’s full name: Mayang
Email id: mayang@uvkxe.co

Disclaimer: This content is provided by sponsor. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

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Cloud PR Wire

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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.

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