Vivakor Signs Term Sheet to Expand Crude Oil Marketing and Remediation Businesses

Core Viewpoint - Vivakor, Inc. has signed a term sheet to secure up to $23 million in funding through the issuance of a new series of convertible preferred stock, aimed at accelerating growth in its crude oil marketing and remediation businesses while enhancing integration across its transportation operations in key oil basins [2][3]. Funding and Financial Structure - The proposed transaction includes the issuance of $25 million in Series B Convertible Preferred Stock, which will be convertible into common stock at a maximum price of $0.75 per share after one year [5]. - Vivakor's marketing segment is set to receive $15 million in restricted cash to establish a credit facility for crude oil marketing, alongside $3 million in unrestricted working capital for operational needs [4]. - The remediation segment will gain at least $5 million in assets, including land, equipment, and crude oil inventory [4]. Operational Enhancements - The counterparty will exclusively use Vivakor's trucking fleet for three years in the Permian and Eagle Ford Basins, which is expected to increase utilization and throughput across the transportation network [5]. - The transaction is anticipated to create synergies across all operating divisions, enhancing crude oil injection and terminaling services [4]. Strategic Goals - The transaction is designed to support the expansion of Vivakor's crude oil marketing and remediation segments, driving additional volumes across its trucking fleet and creating immediate revenue opportunities [3][4]. - The company aims for deeper vertical integration across its platform, leveraging the new capital and assets to enhance crude oil throughput and remediation capabilities [5].