12:21 PM EDT, 04/02/2024 (MT Newswires) -- VivoPower International ( VVPR ) shares climbed by more than 290% on Tuesday after its Tembo unit said it has signed a binding heads of agreement to exclusively negotiate a business combination with Cactus Acquisition Corp.1 (CCTS), a special purpose acquisition company.

A final agreement is expected by early May, under which Cactus Acquisition plans to issue 83.8 million shares at $10 each for Tembo's outstanding shares, valuing the VivoPower ( VVPR ) unit at $838 million, the companies said.

Tembo, a provider of electric utility vehicles, said the transaction is expected to be completed by August, with the merged entity to be named Tembo Group and listed on Nasdaq.

VivoPower ( VVPR ) shareholders are set to receive 5 Tembo Group shares for each share owned following the transaction as dividends, the companies said.

Price: 5.48, Change: +4.02, Percent Change: +275.21