VivoPower International PLC Announces Proposed $250m Australian Distribution Agreement for Tembo Light Electric Vehicles

VivoPower International PLC Announces Proposed $250m Australian Distribution Agreement for Tembo Light Electric Vehicles

PR Newswire

LONDON, Dec. 23, 2020

LONDON, Dec. 23, 2020 /PRNewswire/ -- VivoPower International PLC (NASDAQ: VVPR) (the "Company") is pleased to announce that the Company and its 51% subsidiary, Tembo e-LV B.V. ("Tembo"), have entered into a non-binding Heads of Agreement ("HoA") with GB Auto Group Pty Limited and GB Electric Vehicles Pty Ltd (collectively, "GB Auto") in Australia that will confirm and expand GB Auto's position as the exclusive distributor within Australia for Tembo´s  electric Toyota Land Cruiser, Hilux, and electric vehicle conversion kits.

The agreement proposed by the HoA contemplates a seven-year term. Following the successful deployment of several pilot vehicles into the Australian mines of some of the largest companies in the world, GB Auto intends to commit to purchase at least 500 Tembo electric conversion kits in the first year, and at least 2,000 kits (including the first-year commitment) during the first four years. These orders would be worth around USD$250.

GB Auto plans to increase its Australian footprint, adding facilities to ensure the delivery on these volumes. Tembo will offer GB Auto a first right of refusal on distribution rights for any additional Tembo products.

VivoPower will own all vehicle data and grant GB Auto a non-exclusive, non-transferrable, no royalty licence to use it for sales and maintenance of Tembo products.

The Proposed Agreement would position VivoPower as GB Auto's partner of choice for the sale, construction, installation, and maintenance of all sustainable energy solutions ("SES") and services of Tembo´s products, including EV charging infrastructure, battery storage, renewable electricity generation, and micro-grids.

VivoPower will also be GB Auto's partner of choice for rental, leasing or other financing solutions for Tembo´s products or related SES solutions. The parties expect to finalize the agreement as promptly as practicable.

Executive Chairman and CEO of VivoPower, Kevin Chin said, "We are very pleased to be entering this partnership with GB Auto Australia given their established track record and reputation with their customers, who comprise some of the world's pre-eminent mining houses."

CEO and Founder of GB Auto, Graeme Bensley said, "We are very excited to partner with VivoPower in relation to their SES offering, incorporating Tembo electric vehicles. SES are ideally suited to the requirements of our mining sector customers. We are witnessing strong demand from these customers for EV and are confident of the strong long term growth outlook."

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