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Vivakor, Inc. (NASDAQ:VIVK), currently trading at $0.21 per share and operating with a market capitalization of $12 million, reported unregistered sales of equity securities related to the conversion of promissory notes and a securities purchase agreement, according to a statement filed with the Securities and Exchange Commission. InvestingPro analysis indicates the company operates with a significant debt burden and has been quickly burning through cash.
On October 2 and October 6, the company received notices from J.J. Astor & Co. converting a total of $900,000 of principal from a previously issued junior secured convertible promissory note into 6,488,276 shares of common stock. Specifically, $400,000 was converted into 2,991,773 shares, and $500,000 was converted into 3,496,503 shares. The shares were issued without a Rule 144 restrictive legend, based on a legal opinion received by Vivakor and its transfer agent. The company stated the securities were issued under an exemption from registration as the holder is an accredited investor.
Additionally, on August 12, Vivakor issued a convertible promissory note with a principal amount of $647,500 to a non-affiliated accredited investor under a securities purchase agreement. The company received $550,000 in proceeds for the note. As part of this transaction, Vivakor agreed to issue 82,500 shares of its common stock as an incentive to enter into the agreement. These shares were issued with a restrictive legend on Wednesday. According to InvestingPro data, the company’s total debt stands at $85.84 million, with short-term obligations exceeding liquid assets, as reflected in a concerning current ratio of 0.22.
Vivakor indicated that the issuances were exempt from registration pursuant to Section 4(a)(2) of the Securities Act, as the investors are accredited and familiar with the company’s operations.
This information is based on a press release statement included in the company’s recent SEC filing.
In other recent news, Vivakor, Inc. has announced several significant developments. The company issued over 5.2 million shares of common stock following the conversion of $700,000 from a previously issued promissory note. This conversion was completed after receiving a Notice of Conversion from its lender, J.J. Astor & Co. Additionally, Vivakor signed a non-binding term sheet for a potential $23 million funding deal, which includes $15 million in restricted cash for a credit facility and $3 million in unrestricted working capital.
Moreover, Vivakor received a notice of default from J.J. Astor & Co., stating that the company defaulted on its repayment obligations under a promissory note, with approximately $7.66 million now due. In a strategic move, Vivakor has partnered with Neuralix, Inc. to implement artificial intelligence technology across its midstream energy operations. Lastly, Vivakor set a special dividend payment date for September 26, 2025, distributing shares of Adapti, Inc. to its shareholders. These recent developments reflect Vivakor’s ongoing financial and strategic activities.
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