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DALLAS - Vivakor, Inc. (NASDAQ:VIVK) has completed its first major commodity transaction involving Liquid Petroleum Gas (LPG) valued at approximately $23 million, the company announced Monday. This transaction represents a significant deal for the company, which currently has a market capitalization of just $21.9 million according to InvestingPro data.
The transaction was executed through Vivakor's commodities trading platform, Vivakor Supply & Trading (VST), utilizing the company's previously announced $40 million Intermediation Credit Facility.
This marks VST's expansion into petroleum commodities beyond crude oil as part of the company's strategy to diversify its trading operations. VST will manage transportation, logistics, and gathering operations for the LPG, and plans to utilize Vivakor's midstream infrastructure where feasible.
As is standard in commodity trade transactions, VST will recognize a small percentage of the total contract value as revenue, with the actual amount varying based on market conditions and transaction structure.
"Executing our first major LPG transaction under the new credit facility represents a significant operational milestone for Vivakor Supply & Trading," said James Ballengee, Vivakor's Chairman, President and CEO, according to the company's press release.
Vivakor describes itself as an integrated provider of energy transportation, storage, reuse, and remediation services. The company's facilities provide crude oil storage, transportation, reuse, and remediation services under long-term contracts.
The information in this article is based on a company press release statement.
In other recent news, Vivakor, Inc. has announced a rescheduling of its special dividend payment date to December 31, 2025. The delay is attributed to the ongoing government shutdown, which has hindered the necessary communications and filings with the Securities and Exchange Commission. Additionally, Vivakor has secured $2.7 million through a registered direct offering, involving 13,000,000 shares of common stock and 2,000,000 pre-funded warrants. This offering was facilitated by D. Boral Capital LLC as the exclusive placement agent. In a strategic move, Vivakor has also launched a $24 million crude oil trading operation in the Permian Basin, utilizing its existing midstream assets for this major commodity transaction. Furthermore, the company issued 3.9 million shares to J.J. Astor & Co. following a debt conversion, stemming from a junior secured convertible promissory note. The transaction was conducted under an exemption from registration, as J.J. Astor & Co. is an accredited investor. These developments highlight Vivakor's recent strategic and financial activities.
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