VIVK - Vivakor skyrockets on acquiring companies with assets in major oil basins

Vivakor (NASDAQ:VIVK) rallies 23.4% higher premarket after it signed a definitive agreement to acquire Silver Fuels Delhi and White Claw Colorado City which will enable the company to enter a synergistic segment of the energy industry with the combination of a crude oil gathering, storage, and transportation facility, which feature long-term ten year take or pay contracts. In 2021, SF Delhi generated $33M in revenue and positive operating cash flow. The acquisition is structured as a Membership Interest Purchase Agreement with the owners of SF Delhi and WCCO, Jorgan Development and JBAH to sell 100% of the membership interests of SF Delhi and WCCO to Vivakor for total consideration of ~$37.4M. The consideration to be paid by Vivakor under the MIPA consists of shares of Vivakor common stock in an amount equal to 19.99% of the total amount of issued and outstanding shares. Transaction is expected to be closed within 30 days.

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Vivakor skyrockets on acquiring companies with assets in major oil basins