VivoPower PLC (NASDAQ: VIVO) announced a strategic refocus on its AI data center business and disclosed changes to previously announced separation plans for two subsidiaries, Tembo e-LV B.V. and Caret Digital.

The company's board of directors determined that AI data center development will serve as its principal strategic priority, according to a press release issued by the London-based company.

Regarding Tembo, VivoPower confirmed that a business combination agreement with Cactus Acquisition Corp. 1 Limited remains under review with the U.S. Securities and Exchange Commission. If completed, the combined entity would be named Tembo Group N.V. and listed on the Nasdaq Stock Market, with VivoPower retaining a minority stake. VivoPower said it has received Nasdaq approval to use the ticker "TEMB" for the combined entity.

The company also stated that a previously announced special dividend distribution related to Tembo shares is discontinued. Parameters referenced in prior announcements, including indicative ex-dividend and record dates, are no longer operative and should not be relied upon by shareholders.

For Caret Digital, which holds VivoPower's legacy U.S.-based solar development and digital asset mining operations, the board replaced a previously planned partial spinoff with a proposed full separation. Under the revised plan, the entire issued share capital of Caret Digital held by VivoPower would be distributed to shareholders on a pro rata basis. The board cited deteriorating digital asset market conditions as a factor in revising the earlier arrangement.

The prior special dividend and in specie distribution arrangements for Caret Digital are also discontinued, and previously disclosed indicative parameters are no longer operative.

The proposed Caret Digital separation remains subject to board approval of definitive terms, regulatory and shareholder approvals, listing arrangements on a U.S. national securities exchange, and prevailing market conditions. VivoPower stated no assurance can be given regarding the structure, timing, or completion of the separation.