The Nasdaq-listed firm eliminated debt owed to its CEO, simplifying capital structure ahead of expansion into Nordic data centres.
VivoPower has fully repaid a $28.8 million loan owed to its executive chairman and CEO, Kevin Chin, removing a long-standing debt from its balance sheet. The repayment was split into a $16.5 million conversion into 165,000 convertible preference shares and a $12.3 million cash settlement, part of a $50 million private placement closed on 29 July.
The loan, extended by AWN Holdings—a company controlled by Chin—had been a recurring item in SEC filings since VivoPower’s early years as a public company. The transaction was structured as a related-party deal but priced on the same terms as the broader placement, which attracted investors from the UK, EU, and Nordic region.
Clearing the debt eliminates associated interest costs and streamlines the company’s capital structure as it prepares to expand its data centre operations in the Nordic market. Accrued interest on the loan remains to be settled.