Vivakor Stock Skyrockets 57% on $23 Million Funding News
The energy company's shares surged on massive volume after it signed a term sheet to expand its crude oil marketing and remediation businesses.
Shares of Vivakor, Inc. (VIVK) soared more than 57% in a dramatic trading session, fueled by the announcement that the company has signed a term sheet for up to $23 million in financing. The surge was backed by immense investor interest, with trading volume swelling to nearly 76 million shares.
The proposed deal is aimed at significantly expanding Vivakor's footprint in the crude oil marketing and environmental remediation sectors. According to the , the capital infusion will be structured through the issuance of a new series of convertible preferred stock. This move is designed to provide a critical injection of capital at a pivotal time for the company, which has reportedly faced cash flow pressures.
The financing is allocated for specific strategic growth areas. Approximately $15 million in restricted cash is earmarked to establish a credit facility for the company's crude oil marketing and trading activities. Another $3 million will serve as unrestricted working capital for immediate operational needs, while at least $5 million will be invested in assets and facilities for its remediation division, including land, equipment, and inventory.
James Ballengee, Vivakor's Chairman and CEO, stated that the transaction will directly support the company's growth initiatives. "This funding will not only bolster our expanding crude oil marketing and remediation segments but also increase volumes for our trucking fleet, creating valuable synergies across all of Vivakor's operating divisions," Ballengee noted in a .
A key component of the agreement is a three-year exclusive trucking arrangement, committing the third-party investor to use Vivakor's fleet in the Permian and Eagle Ford Basins. This is expected to secure a predictable revenue stream and enhance fleet utilization. The also include an exclusivity period through December 31, 2025, with a target to close the transaction by the end of the year. The preferred stock will be convertible into common stock one year after execution, at a maximum price of $0.75 per share, offering a structured path for the investor's equity participation.