VivoPower International (NASDAQ: VVPR) shares saw a meteoric rise of 307% during intraday trading on Tuesday, following the announcement from its subsidiary, Tembo, regarding its merger with Nasdaq-listed Cactus Acquisition Corp. 1 Limited.
According to VivoPower (VVPR), the agreement involves exclusive negotiations for a business combination to merge with CCTS, with Tembo emerging as the surviving entity and rebranding as “Tembo Group.”
Under the terms of the agreement, CCTS will issue 83.8 million shares valued at $10 each in exchange for Tembo shares, effectively setting a pre-money equity valuation of $838 million for Tembo.
Moreover, VivoPower shareholders stand to benefit from the merger, as they will receive a dividend in Tembo shares, subject to certain conditions and lock-up periods. The completion of the transaction is subject to the final execution of a Business Combination Agreement and an independent fairness opinion. Both parties expect to finalize the merger in May 2024 and target the closing for August 2024.
VivoPower (NASDAQ: VVPR) Stock Performance
VVPR stock skyrocketed 306.96% to close at $5.90 on Tuesday. The traders had exchanged hands with 120,359,466 (120.35 million) shares compared to the average daily trading volume of 45.91K.
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