Vivakor signs term sheet to expand crude oil marketing, remediation businesses

Vivakor (VIVK) signed a term sheet with a non-affiliate counterparty to provide up to $23 million in funding in exchange for the issuance of a new series of convertible preferred stock. The contemplated transaction is designed to accelerate the growth of Vivakor’s crude oil marketing and remediation businesses, while also strengthening integration across its trucking and transportation operations in the Permian and Eagle Ford Basins. Under the non-binding terms of the prospective transaction, Vivakor’s marketing segment, Vivakor Supply & Trading, would receive $15 million in restricted cash to further establish a credit facility earmarked specifically for its crude oil marketing and trading activities, while Vivakor would receive $3 million in unrestricted working capital to support near-term operational needs. Additionally, the Company’s remediation segment would receive at least $5 million in assets and facilities, including land, equipment, and crude oil inventory. In addition, the counterparty would agree to exclusively utilize Vivakor’s trucking fleet for a three-year period in the Permian and Eagle Ford Basins, further strengthening utilization and throughput across the Company’s transportation network. Although not a direct component of the contemplated transaction, the added trucking volumes and expanded marketing activities are also expected to drive incremental demand across Vivakor’s network of crude oil injection and terminaling facilities, supporting integration across all four of the Company’s operating segments. Under the proposed terms, Vivakor would issue $25 million in Series B Convertible Preferred Stock. The securities would be convertible into common stock beginning one year after the execution of definitive agreements, subject to a maximum conversion price of $0.75 per share. Vivakor has agreed to an exclusivity period with the third party through December 31, 2025, with a target closing date of year-end.