Vivakor secures $5 million in registered direct offering

DALLAS - Energy infrastructure company Vivakor, Inc. (NASDAQ:VIVK), currently trading at $0.28 per share and showing a significant 37% return over the past week, announced Thursday it has entered into a securities purchase agreement for approximately $5 million in a registered direct offering priced at-the-market under Nasdaq rules. According to InvestingPro analysis, the company operates with a significant debt burden and weak gross profit margins of 14%.

The offering includes 8,417,645 shares of common stock and 14,689,851 pre-funded warrants exercisable at $0.001 per share. The transaction was arranged with what the company described as "a leading single fundamental institutional investor."

The offering is expected to close on or about October 17, with D. Boral Capital LLC serving as the exclusive placement agent. Vivakor stated it intends to use the net proceeds for working capital and general corporate purposes.

The securities are being offered through a "shelf" Registration Statement on Form S-3 previously filed with the SEC and declared effective on February 10, 2023.

Vivakor operates in two main business segments: crude oil transportation services and facility services for terminaling and storage of crude oil and petroleum products. The company’s transportation services are primarily centered in Colorado’s DJ Basin, Oklahoma’s STACK play, and the Permian and Eagle Ford Basins of Texas.

The company also operates the Omega Gathering Pipeline, an approximately 45-mile crude oil gathering and shuttle pipeline in Blaine County, Oklahoma, which connects to the Cushing storage hub via the Plains STACK Pipeline.

This information is based on a press release statement from the company.

In other recent news, Vivakor, Inc. has announced several significant developments. The company signed a non-binding term sheet to establish a $40 million commodity intermediation credit facility to support its crude oil trading platform. Additionally, Vivakor entered into a Second Forbearance and Amendment to Loan Agreement with J.J. Astor & Co., which provides an additional loan of up to $2,450,000. In another financial maneuver, Vivakor issued common stock in connection with convertible notes, converting $900,000 of principal into 6,488,276 shares of common stock. Furthermore, the company reported the issuance of 5,235,602 shares following the conversion of $700,000 of principal from a promissory note with J.J. Astor & Co. Moreover, Vivakor signed a term sheet for a potential $23 million funding deal through the issuance of convertible preferred stock, which includes $15 million for a credit facility and additional funds for working capital and remediation assets. These recent developments reflect Vivakor’s strategic efforts to enhance its financial position and expand its operations.

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