Vivakor amends repayment terms with Cedarview, issues new shares

In a recent 8K filing, Vivakor , Inc. (NASDAQ:VIVK), a $28.5 million market cap company specializing in refuse systems, disclosed the amendment of a loan agreement and the issuance of new equity securities. The company’s stock, currently trading at $0.80, has experienced significant pressure, declining over 43% in the past six months. According to InvestingPro analysis, the company operates with concerning financial metrics, including significant debt obligations and weak profitability. Vivakor entered into a side letter with Cedarview Capital Management LLC on Sunday, April 9, 2025, modifying the repayment schedule of a loan dated October 31, 2024.

The company has agreed to settle the outstanding loan amount through a series of payments: $589,890.37 was paid on the effective date of the side letter, with additional payments of $150,000 due at the end of April and May 2025, followed by four monthly installments of $645,684.69. This debt restructuring comes at a critical time, as InvestingPro data shows the company’s current ratio at 0.1, indicating potential challenges in meeting short-term obligations. Vivakor also committed to allocate 30% of net proceeds from future equity line drawdowns or asset sales towards the loan repayment and issued 300,000 shares of restricted common stock to Cedarview on Tuesday, April 11, 2025.

Furthermore, Vivakor issued 350,000 shares of restricted common stock to Justin Ellis on April 11, 2025, following his conversion notice of a $350,000 convertible promissory note dated July 7, 2024. On the same day, the company also distributed 107,789 shares of its Series A Preferred Stock as part of the purchase price for the Endeavor Entities transaction, with a portion of these shares going to entities controlled by Vivakor’s CEO, James Ballengee. These preferred shares carry a 6% annual dividend payable in common stock.

Additionally, 1,298,453 shares of restricted common stock were issued to holders of Series A Preferred Stock for four months of dividends, with significant allocations to entities under Ballengee’s control.

All securities were issued under exemptions from registration pursuant to Section 4(a)(2) of the Securities Act, as the recipients are accredited, familiar with Vivakor’s operations, and considered sophisticated investors.

This information, based on a press release statement, indicates a strategic move by Vivakor to manage its debt obligations while also altering its capital structure through equity distribution. With a gross profit margin of just 7.5% and negative EBITDA of $5.33 million in the last twelve months, these financial restructuring efforts are crucial. Subscribers to InvestingPro can access additional insights, including 5 more exclusive ProTips and comprehensive financial health metrics that help evaluate the company’s turnaround potential.

In other recent news, Vivakor, Inc. has secured a $6.625 million convertible note from J.J. Astor & Co. to enhance its working capital and address existing financial obligations. The agreement, which includes a provision for repayment in either cash or stock, is part of a broader strategy to stabilize the company’s finances. Additionally, Vivakor has been issued a deficiency notification from Nasdaq due to its stock price falling below the required minimum bid price, with a deadline to regain compliance by September 2025.

In a strategic move to manage its expanding operations, Vivakor has entered into several agreements resulting in the issuance of unregistered equity securities. This includes a consulting agreement with WSGS, LLC, and equity compensation arrangements for company executives, aimed at supporting business growth following the acquisition of the Endeavor Entities. The company has also amended its Articles of Incorporation to eliminate all designated series of preferred stock, a change disclosed in a recent SEC filing.

These developments reflect Vivakor’s efforts to navigate financial challenges while positioning itself for future growth. The company’s recent actions, including the issuance of common and preferred stock, are part of its broader strategy to manage its growing portfolio. Investors will be monitoring how Vivakor’s adjustments to its capital structure and strategic agreements will impact its operations and market position.

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