VivoPower is pleased to announce that our wholly-owned subsidiaries in Australia, J.A. Martin Electrical Pty Limited (“J.A. Martin”) and Kenshaw Electrical Pty Limited (“Kenshaw”), have successfully completed a refinancing of their funding facilities.
J.A. Martin has refinanced its funding lines with a 38% reduction in costs and more flexible terms that will enhance liquidity and ensure there is an appropriate financing platform in place to pursue growth over the next 3 to 5 years. In the meantime, Kenshaw has been able to retire its current working capital facilities out of surplus cash reserves, without compromising the ability to fund future growth.
Executive Chairman and CEO of VivoPower, Kevin Chin, commented, “Over the past 2 years, funding constraints and costs have hampered the ability for J.A. Martin and Kenshaw to fully capture all of their growth opportunities. VivoPower’s credit profile has however been strengthened by the successful oversubscribed equity raise of US$28.75 million completed in October and these are the first steps in reducing the costs and increasing the flexibility of financing facilities across the Company. As a result of stronger than expected interest, we have also accelerated our discussions with potential financiers globally in relation to establishing a proprietary lease finance program for Tembo e-LV B.V. (“Tembo”). We anticipate this will be a standalone, non-recourse facility that will enable Tembo’s customers to lease its light electric vehicles (“LEV”) in a seamless manner. It will be a key differentiator and enabler of LEV sales for Tembo and is consistent with the build out of our sustainable energy solution (“SES”) offering.”
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