Shares of VivoPower International (NASDAQ:VVPR) were trading higher on Monday, after the company announced it has agreed to a deal with a distributor that will offer its electric vehicle conversions in Australia.
As of 1:30 p.m. EST, VivoPower's shares were up about 22.7% from Friday's closing price.
This will take a bit of explaining.
London-based VivoPower has a 51% stake in a Dutch company called Tembo e-LV, which installs electric drivetrains in Toyota Land Cruiser SUVs and Hilux pickups. Tembo also sells kits to convert vehicles to battery-electric operation.
GB Auto is a privately held Australian company that sells vehicles and equipment to clients in the mining, construction, transportation (think buses), and agricultural sectors. GB Auto has a subsidiary, called GB Electric Vehicles, that sells -- you guessed it -- electric vehicles, specifically to mining companies for underground operation.
So here's the news: Tembo has signed a definitive agreement with GB Electric Vehicles, under which GB becomes the exclusive Australian distributor of Tembo's trucks and conversion kits.
It's a substantial piece of business for VivoPower. The company said in a statement that it expects GB Auto to purchase $250 million worth of vehicles and conversion kits over the four-year term of the deal.
That, plus the intense investor interest in everything having to do with electric vehicles, is why the stock is up today.