Benzinga | Jun 2, 2021 09:31AM EDT

VivoPower Reports Proposed $58M Nordic Distribution Deal For Tembo Electric Light Vehicles

* Upon completion, Arctic Trucks Limited would commit to purchase 800 electric light vehicle conversion kits from VivoPower subsidiary Tembo e-LV B.V over the next 5 ½ years

* Arctic Trucks specializes in re-engineering and conversion of four-wheel drive vehicles for extreme conditions

* VivoPower estimates the value of the Proposed Agreement to be US$58m

* The Proposed Agreement would mark the Company's third major distribution deal across three continents

LONDON, June 02, 2021 (GLOBE NEWSWIRE) -- VivoPower International PLC (NASDAQ:VVPR, the &ldquo, Company&rdquo, ))) 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 leading ruggedized vehicle converter Arctic Trucks Limited ("Arctic Trucks") for Arctic Trucks to convert and distribute Tembo electric light vehicles ("e-LVs") in Norway, Sweden, Iceland and Finland.

Under the proposed agreement (the "Proposed Agreement"), Arctic Trucks would commit to purchase 800 Tembo e-LV conversion kits through December 2026. Based upon the Company's estimates, these orders could be worth an estimated US$58 million in total value over the life of the Proposed Agreement. 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 defence. 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.

This Proposed Agreement would mark VivoPower's third major distribution deal in 2021 for Tembo e-LVs across three continents and would continue to advance the Company's aim to build a global Tembo distribution network before the end of this year. The Company previously completed a distribution deal with GB Auto Group in Australia in January, and announced a non-binding Heads of Terms with Acces Industriel Mining Inc. for distribution of Tembo e-LVs in Canada last week. The latter deal is expected to be formalized before the end of June.

Arctic Trucks specializes in the re-engineering and conversion of four-wheel drive vehicles for extreme conditions, particularly in the harsh polar regions. Arctic Trucks vehicles have enabled ventures to the North Pole and erupting Icelandic volcano Eyjafjallaj?kull on television's Top Gear and set the Guinness World Record for the fastest overland journey to the South Pole. Those credentials made Arctic Trucks a natural choice for a partnership to convert and distribute Tembo e-LVs designed for mining and other ruggedized applications.

Kevin Chin, Executive Chairman and CEO of VivoPower, said "We are extremely pleased to be partnering with Arctic Trucks to expand the distribution reach of our Tembo vehicles. Tembo e-LVs are engineered and built to enable decarbonization through fleet electrification in some of the world's harshest and most carbon-heavy industries. Arctic Trucks are no strangers to the challenges of engineering vehicles for ruggedized environments, and we look forward to working with them to help mining and other customers in the Nordic regions achieve net-zero carbon goals previously thought impossible."

Under the Proposed Agreement, it is intended that Arctic Trucks would commit to purchase the 800 kits from VivoPower as scheduled over the duration of the agreement, acquire an equal number of Land Cruisers or Hilux from Toyota, convert the vehicles to ruggedized e-LVs using the Tembo solutions, sell the units on and be retained by customers for servicing and maintenance.

VivoPower and Arctic Trucks intend to finalize the Proposed Agreement as soon as practicable.