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Hello!

We wanted to give you a quick intraday update on our new alert, VivoPower PLC (Nasdaq: VIVO).

Following our alert this morning, VIVO opened at 3.97 with a high so far of 3.98.

VIVO has a history of experiencing high volatility, and could be positioned to provide increased gains.

Over the past few months it has been building a base, trending sideways, creating what could be a launchpad for the next breakout higher.

In August, VIVO rallied to a high of 5.15 and in June it traded as high as 6.86.

Both of those show substantial gain opportunity, +29% and +72% upside from today’s open.

Furthermore, the company has announced multiple growth catalysts recently for the next breakout higher.

Importantly, the company announced:

“VivoPower Fully Retires US$28.8 Million Shareholder Debt Principal, Strengthening Balance Sheet Ahead of Nordic AI Infrastructure Buildout”

VIVO “announced the complete retirement of US$28.8 million of shareholder debt principal previously owed to its founding shareholder, AWN Holdings Limited ("AWN"), an entity affiliated with Executive Chairman and Chief Executive Officer, Kevin Chin.”

Overview

  • “Complete retirement of US$28.8 million shareholder debt principal - 100% elimination of outstanding principal obligations to AWN

  • US$16.5 million retired via PIPE 2 participation - AWN participated in the US$50 million PIPE 2 transaction announced on 29 July 2026, demonstrating founder alignment with UK, EU and Nordic-based institutional investors, committing to a minimum lock-up period of 6 months. 165,000 convertible preference shares were issued to AWN in exchange for the cancellation of US$16.5 million of debt

  • US$12.3 million retired concurrently - the balance of the outstanding principal has been fully retired through payment in cash

  • Balance sheet strengthening - the retirement of the debt owed to AWN eliminates the associated interest expense and materially improves credit quality ahead of Nordic AI infrastructure platform buildout

  • Approval by independent board members - the transaction has been reviewed and approved by the Audit and Risk Committee of the Board, comprised solely of independent directors, under the Company's Related Party Transactions Policy.

Following these transactions, VivoPower has no remaining principal balance outstanding under the historical AWN shareholder loan facility. Residual amounts, including any accrued interest, will be finalized and repaid in due course.”

In addition, the company also announced:

“VivoPower Approves Independent Listing of 2.2GW Non-Nordic AI Infrastructure Platform, Transferring Capital Expenditure Requirements Whilst Retaining De Facto Control”

VIVO “announced that the Board of Directors has approved the establishment of a new, separate AI infrastructure company (the "AI Infrastructure Platform" or the "Platform") to hold the Company's non-Nordic AI data center portfolio and pipeline. The Platform will be headquartered in Singapore and be independently capitalized through a targeted pre-IPO institutional and sovereign investment round followed by a planned primary listing on the London Stock Exchange ("LSE") and a secondary listing on the Abu Dhabi Securities Exchange ("ADX").”

As the company further explains:

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“The Platform will house the non-Nordic AI data center infrastructure portfolio and pipeline assembled by the VivoPower team through its sovereign and government relationships across the GCC and ASEAN regions, comprising in excess of 2.2GW of assets and development opportunities located primarily across the United Arab Emirates, Oman, Saudi Arabia, Malaysia, and the Philippines. The Platform will fund the construction of these assets through its own pre-IPO listing proceeds and third-party capital, removing any future VivoPower construction funding requirement in respect of the non-Nordic portfolio.

❝

VivoPower will retain de facto control of the Platform through a combination of anchor shareholding, board representation, and group-company governance linkage, preserving VivoPower shareholder exposure to non-Nordic AI infrastructure upside without any potential dilution to existing VivoPower shareholders. For the avoidance of doubt, the Platform has targeted a pre-IPO investment round to raise third party institutional and sovereign capital as a precursor to the planned listings, and existing VivoPower shareholders will not receive Platform shares in connection with the transaction. VivoPower shareholders will however continue to hold their exposure to the non-Nordic portfolio through VivoPower's retained anchor shareholding in the AI Infrastructure Platform.

Strategic Rationale

  • Monetizes potential value for VivoPower shareholders: through the Platform achieving an independent valuation through institutional and sovereign capital raising in markets that ascribe greater value to assets and pipeline in their native markets;

  • Sharpens VivoPower as a Nordic-focused AI data center infrastructure pure-play, with its 42MW platform asset in Mo i Rana in Norway as well as a broader Nordic-based pipeline;

  • Removes non-Nordic construction funding obligations from VivoPower: the Platform will be independently capitalized, with no VivoPower funding commitment required for its portfolio and pipeline;

  • Fortifies alignment with sovereign and government relationships: by providing a dedicated vehicle through which those relationships can be scaled with matched capital and a commitment to invest in such markets;

  • Unlocks significant demand from GCC, ASEAN and other capital pools for non-Nordic AI data center infrastructure assets: a Singapore headquarters combined with an LSE primary listing and an ADX secondary listing is designed to enable access for institutional, sovereign, strategic, and Sharia-compliant AI infrastructure capital best matched to non-Nordic assets across the UAE, Oman, Saudi Arabia, Malaysia, and the Philippines;

  • Preserves VivoPower shareholder economic exposure and control: VivoPower will retain de facto control of the Platform through anchor shareholding, board representation, and group governance linkage; and

  • Simplifies corporate risk profile: by ring-fencing sovereign and geopolitical risk in the Platform vehicle.”

Non-Nordic Platform Portfolio and Pipeline

“The non-Nordic portfolio to be held by the Platform has been assembled by the VivoPower team through proprietary relationships established over decades, through direct sovereign, government, and strategic-partner engagement across the GCC and ASEAN regions. It comprises in excess of 2.2GW of assets and development opportunities located primarily across the United Arab Emirates, Oman, Saudi Arabia, Malaysia, and the Philippines. The portfolio and pipeline is tiered in the following manner reflecting site maturity:

  • Ready to Build (RTB) assets — with power connection agreements and all relevant building permits and approvals;

  • Secured powered-land positions — sites with signed land access and/or grid connection or firm allocation;

  • MOU-stage sites — sites with signed memoranda of understanding covering land, grid, or offtake terms, subject to definitive documentation; and

  • Prospective sites — sites under active evaluation and negotiation, not yet contractually secured.

Tiered MW-by-jurisdiction disclosure across the UAE, Oman, Saudi Arabia, Malaysia, and the Philippines will be provided at the appropriate time.

VivoPower's Nordic strategy and platform is unaffected by the establishment of the Platform. The Mo i Rana AI data center in Norway remains the priority focus and management is currently working on the finalization of the definitive lease documentation with a preferred tenant as well as the technical engineering details and EPC (engineering, procurement and construction) contractor.”

Governance, Advisors, and Next Steps

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“The Board of VivoPower has approved the establishment of the Platform and authorized management to execute the transaction. Capital markets, legal, and tax advisers have been shortlisted in respect of the transaction.

❝

Completion of this transaction, including the planned listings, is subject to definitive documentation, adviser and sponsor appointments, regulatory clearances, market conditions, and — where applicable — VivoPower shareholder approval. The Company will provide further updates as material milestones are achieved.”

Kevin Chin, Executive Chairman and Chief Executive Officer of VivoPower, said:

❝

"The Board has approved the establishment of a separately listed Platform to hold and independently capitalize the non-Nordic AI data center portfolio which our team has assembled through long-standing sovereign and government relationships across the GCC and ASEAN regions. At present, this comprises in excess of 2.2GW of assets and development opportunities located primarily across the United Arab Emirates, Oman, Saudi Arabia, Malaysia, and the Philippines. We believe this strategy and structure best matches these assets with the right sovereign and institutional capital, which may unlock incremental value for VivoPower shareholders. This is by virtue of VivoPower retaining de facto control of the Platform and preserving shareholder exposure to the non-Nordic upside, without VivoPower having to fund the associated construction capital expenditure."

We are continuing to monitor VIVO for a sustainable breakout higher.

Sources: PR1, PR2, PR3, PR4, PR5, PR6, PR7, PR8, PR9, Website, Chart

Happy Trading!

SmallCapStocks Team

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