Benzinga | May 19, 2021 01:34PM EDT

VivoPower Shares Move Higher Following Press Release Co., Its Subsidiary, Tembo e-LV, Entered Non-Binding Heads Of Terms With Canada's Acces Industrial Mining For Acces to Distribute Tembo Electric Light Vehicles In Canada

VivoPower International PLC (NASDAQ:VVPR) (the "Company") is pleased to announce that the Company and its wholly-owned subsidiary, Tembo e-LV B.V. ("Tembo"), have entered into a non-binding Heads of Terms with Canadian industrial equipment distributor Acces Industriel Mining Inc. ("Acces") for Acces to distribute Tembo electric light vehicles ("e-LVs") in Canada.

Under the proposed agreement (the "Proposed Agreement"), Acces would commit to purchase 1,675 Tembo e-LV conversion kits through December 2026. Based upon the Company's estimates, these orders could be worth an estimated US$120 million in total value over the life of the Proposed Agreement, with a delivery schedule weighted towards the latter part of the Proposed Agreement period. The Proposed Agreement must be finalized prior to June 30, 2021, unless the parties agree to an extension, and all purchase commitments would be subject to the terms and conditions set forth in the final agreement.

The Tembo kits transform diesel-powered Toyota Land Cruiser and Hilux vehicles into ruggedized e-LVs for use in mining and other hard-to-decarbonize sectors, including construction and defense. Alongside solar generation, battery storage and on-site power distribution, Tembo e-LV products are a key component of VivoPower's turnkey net-zero solutions for corporate decarbonization.

The Proposed Agreement follows January's distribution agreement with GB Auto Group Pty Limited and GB Electric Vehicles Pty Ltd (collectively, "GB Auto"). Discussions with other distributors are also active and ongoing across Europe, Africa, the Middle East, the Americas and Asia. VivoPower is targeting the completion of its global Tembo distribution network by December 2021.

VivoPower selected Acces as the Company's distribution partner in Canada because of Acces's established, long-term experience supplying, ruggedizing and servicing Toyota Land Cruisers, as well as its extensive active relationships with dozens of mining companies which make Acces the foremost player in Canada's mining segment.