VivoPower to Procure Underlying 211 million XRP Position Worth $696 million Through Budgeted Initial $100 million Acquisition of Ripple Shares

Core Insights - VivoPower International PLC is acquiring Ripple Labs shares as part of a strategic enhancement to its XRP-focused digital asset treasury strategy [1][3] - The acquisition will make VivoPower the first and only U.S.-listed company providing exposure to Ripple shares and XRP tokens [1][3] - VivoPower plans to purchase an initial $100 million of Ripple shares, translating to an underlying exposure of 211 million XRP tokens valued at approximately $696 million [1][6] Acquisition Details - VivoPower has budgeted $100 million for the acquisition of Ripple shares, which is subject to final approval from Ripple's executive management [1][4] - The estimated value accretion for VivoPower shareholders is approximately $5.15 per share for every $10 million of Ripple shares acquired [3][5] - The acquisition is expected to allow VivoPower to buy XRP tokens at an implied price of $0.47 per token, representing an 86% discount compared to the market price [6] Ripple's Position - Ripple holds 41 billion XRP tokens, valued at $135 billion at current prices, and has a number of operating businesses including RLUSD, a stablecoin [2][6] - The network is mildly deflationary due to approximately 14 million XRP tokens being burnt to date [2] - Ripple's business units include a digital asset prime broker, Hidden Road, and the recently acquired stablecoin payment platform, Rail [2][13] Strategic Rationale - The acquisition aligns with VivoPower's objective of building a sustainable long-term treasury model, optimizing yield maximization while minimizing costs [5][8] - VivoPower will have full legal title of the Ripple shares purchased and will be recorded directly on Ripple's cap table [4] - An independent auditor will conduct quarterly reviews of VivoPower's Ripple shareholdings to ensure transparency [4][7] Digital Asset Infrastructure - VivoPower has engaged leading digital asset custodians and private market securities infrastructure providers, including BitGo and Nasdaq Private Market, to support its treasury strategy [7] - The partnership with Nasdaq Private Market, LLC is significant as it is Ripple's preferred partner for transacting shares [7] Company Overview - VivoPower is transforming into an XRP-focused digital asset enterprise, aiming to contribute to the growth and utility of the XRP Ledger [8][9] - The company operates globally with a focus on sustainable energy solutions and has two business units: Tembo and Caret Digital [9]