Why Is VivoPower Stock Rising Today?

• VivoPower will invest $5 million for a 20% stake in KWeather.
• The companies plan to develop WeatherCoin, a weather-based digital derivative for climate risk management.
• KWeather will offer investors access to XRP and potential Ripple Labs investments.

VivoPower International PLC’s (VVPR) stock surged nearly 23% on Monday after the company struck a deal with South Korea’s largest weather company, KWeather Co., to develop a weather-based digital token.

VivoPower signed a non-binding heads-of-agreement with KWeather under which the company, through its Vivo Federation division, will invest $5 million for a 20% stake in KWeather and become its second-largest shareholder. VivoPower will hold two of the five board seats at KWeather.

Use Of Proceeds

The South Korean company intends to use the proceeds to purchase VivoPower shares and offer access to XRP, as well as potential Ripple Labs investments. The companies plan to develop WeatherCoin, a weather-based digital derivative designed for climate risk management.

Vivo Federation is VivoPower’s global digital asset and blockchain arm, focused on acquiring public companies outside the U.S. The agreement is non-binding, with the companies working towards finalization by November 30.

Last month, VVPR raised approximately $19 million through a share issuance priced at $6.05 per share. This followed a $121 million fundraising in May, led by Prince Abdulaziz bin Turki Abdulaziz Al Saud, Chairman of Eleventh Holding Co. in Saudi Arabia, aimed primarily at acquiring XRP.

On Friday, VivoPower’s unit, Tembo e-LV, partnered with Associated Vehicle Assemblers (AVA) to distribute, assemble, and service Tembo’s fully electric utility vehicles across Kenya, Tanzania, and other East African countries.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits surrounding VVPR stock rose to ‘bullish’ from 'bearish' a day ago, with ‘high’ message volume.

Volumes traded on Monday exceeded the average of 553,546 in a little under three hours of trading, according to Stocktwits data. Year-to-date, VVPR’s stock has surged 160%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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