VivoPower International (NASDAQ:VVPR) +313.9% in Tuesday’s trading after unveiling plans for its Tembo E-LV subsidiary to go public via a merger with special purpose acquisition company Cactus Acquisition Corp.
Upon closing of the deal, the combined company is expected to remain Nasdaq-listed under the name Tembo Group.
VivoPower (VVPR) said CCTS will issue 83.8M shares in exchange for Tembo shares at $10 per CCTS share, which corresponds to a pre-money indicative equity valuation of Tembo of $838M.
Also, VivoPower (VVPR) will issue a dividend to shareholders once the SPAC merger closes, distributing a total of 16.76M Tembo shares, or 20% of the 83.8M shares, will be distributed to shareholders, who will receive indicatively five Tembo dividend shares for each VVPR share held, assuming no further share issuance and warrants conversion prior.
VivoPower (VVPR) investors will be eligible for the Tembo dividend payment if they are on record as of April 30; the company expects the merger to close in May with the later transaction set for August.