Vivakor, Inc. (NASDAQ: VIVK) shares have experienced a significant uptrend today. As of the most recent check during the final hour of today's regular trading session, VIVK stock had risen by 25.30% to $3.12.
Table of Contents
Toggle- Acquisition of Endeavor Entities
- Closing Conditions
- Strategic Implications and Future Prospects
Acquisition of Endeavor Entities
Vivakor (VIVK) has provided an update on the progress of its previously announced acquisition of several entities under the umbrella of Endeavor Crude, LLC. These entities include Meridian Equipment Leasing, LLC and its subsidiary CPE Gathering MidCon, LLC, Equipment Transport, LLC and its subsidiary ET EmployeeCo, LLC, as well as Silver Fuels Processing, LLC (collectively known as the "Endeavor Entities").
The Endeavor Entities are experts in the transportation, collection, blending, storage, remediation, and repurposing of generated water, oilfield waste, and crude oil and its byproducts. Their operations encompass truck and pipeline transportation of these commodities.
Closing Conditions
As previously communicated, the completion of the acquisition is contingent upon the fulfillment of several conditions. Those include due diligence satisfactory to the parties, delivery of audited financials for the periods ended December 31, 2022 and 2023, delivery of unaudited financial statements for any quarterly periods in 2024.
Vivakor is also to receive a satisfactory fairness opinion to the underlying transaction, approval under the Hart Scott Rodino Act (HSR), as well as other customary closing conditions. After receiving audited financial statements for the corresponding fiscal years 2022 and 2023, Vivakor is wrapping up its due diligence. The Company plans to submit its pre-merger HSR notification soon. As of right present, Vivakor plans to close the Endeavor Entities purchase in the third quarter of 2024.
Strategic Implications and Future Prospects
The Endeavor Entities provide Vivakor a fantastic chance to bring together a number of connected companies under one roof, increasing the company's profitability and diversification. The remediation processing facilities being built by Vivakor will make it easier to collect, reuse, and dispose of waste products and petroleum byproducts that are produced during the treatment and processing of oilfield waste.
Through the creation of synergies between business sectors, Vivakor is able to optimize operations and more fully capture the value chain, leading to notable cost reductions and positive free cash flow to support ongoing expansion and ongoing operations.