VivoPower International PLC Announces Reconstitution of Aevitas Group Securities

LONDON, July 10, 2020 (GLOBE NEWSWIRE) -- VivoPower International PLC (NASDAQ: VVPR, the “Company”) announces that its Australian subsidiary, Aevitas Group Limited (“Aevitas”) today held an extraordinary general meeting of its ordinary shareholders as well as its exchangeable preference shareholders and exchangeable noteholders.  The meeting was held to allow the exchangeable preference shareholders and exchangeable noteholders the opportunity to vote on a proposed change to these securities.  

The key elements of the proposed change are as follows:

• The Aevitas exchangeable preference shares and exchangeable notes will be reconstituted as an Aevitas preference share. The preference share will not be dilutive to VivoPower ordinary shareholders, as there is no mandatory exchangeability feature; and
  
   
• The Aevitas preference share will pay the same coupon as the current Aevitas exchangeable preference shares and exchangeable notes, being 7% per annum and this will be cumulative. 

The changes are facilitative in that they enable holders to agree with Aevitas to reconstitute their securities as preference shares.  The Company is pleased to advise that 100% of the exchangeable preference shareholders and exchangeable noteholders voted in favour of the changes.  If, as is expected, all holders proceed to the reconstitution of their securities, the change would have the following key benefits for the Company:

• VivoPower’s ordinary shareholders will avoid potential future dilution amounting to 12.9% of the issued ordinary shares of the Company as the exchangeable preference shares and exchangeable notes would have otherwise mandatorily been exchanged into VivoPower ordinary shares on June 30, 2021; 
  
   
• VivoPower’s subsidiary, Aevitas will reduce debt on its balance sheet by A$36.1 million (US$24.9 million) (unaudited figures as at June 30, 2020) due to the securities (which have been classified as debt) now becoming preference shares, which are classified as equity. This in turn would harmonise with the Company’s consolidated balance sheet; and
  
   
• Simplification of the capital structure, enabling equity analysts and investors alike to be able to conduct fundamental analysis on the company with greater ease.

About VivoPower

VivoPower is an international solar and critical power services company, providing critical energy infrastructure generation and distribution solutions to a diverse range of commercial and industrial customers, including the development, construction, and sale of photovoltaic solar projects.

Forward-Looking Statements

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