VivoPower PLC (NASDAQ:VIVO, FRA:51J) said on Friday it has begun converting a portion of its publicly traded shares into a restricted class held by insiders, reducing its public float as part of a broader push to align management with long-term shareholder interests.
The company said executive chairman and CEO Kevin Chin and affiliated entities have voluntarily converted about 2.96 million Nasdaq-listed Class A ordinary shares into unlisted Class B shares, which carry enhanced voting rights but cannot be freely traded.
The move removes the converted shares from the publicly tradeable pool and follows recent insider purchases totaling roughly 2.65 million shares, the majority acquired by Chin.
VivoPower said the conversion is part of a wider capital strategy aimed at limiting shareholder dilution, after the company recently scrapped an at-the-market equity program and withdrew a $180 million shelf registration.
The dual-class share structure enabling the conversion was approved by shareholders at an extraordinary general meeting in January.
The company added that it may expand the conversion program among senior leadership over time, subject to board approval, to reinforce long-term ownership and governance alignment.
Class B shares can only be converted back into Class A shares with shareholder approval, the company said.
VivoPower has said it intends to fund growth in its AI data center and powered land infrastructure business primarily through project-level financing rather than issuing new equity, unless such issuance is clearly accretive.