Vivakor issues over 10.9 million shares upon note conversion on Nasdaq

Vivakor, Inc. (NASDAQ:VIVK) reported unregistered sales of equity securities following the conversion of portions of a junior secured convertible promissory note by its lender, J.J. Astor & Co. According to a statement released Friday, the company received three Notices of Conversion on October 10, October 15, and October 16. Each notice converted $350,000 of the principal amount of the note, totaling $1,050,000.

These conversions resulted in the issuance of 3,323,837 shares, 3,796,095 shares, and 3,795,095 shares of Vivakor’s common stock, respectively. In total, the company issued 10,915,027 shares to the lender.

The shares were issued without a Rule 144 restrictive legend, based on a legal opinion provided to Vivakor and its transfer agent. The company stated that the issuances were exempt from registration under Section 4(a)(2) of the Securities Act, as the recipient is an accredited investor familiar with the company’s operations.

The original promissory note was issued on March 17, with a principal amount of $6,625,000, and Vivakor received $5,000,000 in proceeds before fees on March 18.

Vivakor’s common stock is listed on the Nasdaq Capital Market under the symbol VIVK. The information is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, Vivakor, Inc. announced a registered direct offering that will raise approximately $5 million, involving 8,417,645 shares of common stock and 14,689,851 pre-funded warrants. The offering is priced at-the-market under Nasdaq rules and was arranged with a significant institutional investor. Additionally, Vivakor has signed a non-binding term sheet to establish a $40 million credit facility for its crude oil trading platform, which will supplement a previous $23 million working capital investment. In another development, the company entered a second forbearance agreement with J.J. Astor & Co., which includes a provision for an additional loan of up to $2,450,000. This agreement amends previous loan documents and addresses the outstanding principal amounts on existing notes. Furthermore, Vivakor reported unregistered sales of equity securities, converting $900,000 of principal from a junior secured convertible promissory note into 6,488,276 shares of common stock. The shares were issued without a Rule 144 restrictive legend, as the holder is an accredited investor. These developments reflect Vivakor’s ongoing financial and strategic maneuvers.

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