Vivakor, Inc. Enters into Loan Agreement with Cedarview Opportunities Master Fund LP

Vivakor, Inc. (NASDAQ: VIVK) announced on October 31, 2024, that it has entered into a Loan and Security Agreement with Cedarview Opportunities Master Fund LP, acting as the lender. The agreement entails Vivakor, Inc. acting as the borrower and certain subsidiaries including Vivaventures Management Company, Inc., Vivaventures Oil Sands, Inc., Silver Fuels Delhi, LLC, White Claw Colorado City, LLC, Vivaventures Remediation Corporation, Vivaventures Energy Group, Inc., Endeavor Crude, LLC, Meridian Equipment Leasing, LLC, and Silver Fuels Processing, LLC, acting as guarantors.

Pursuant to the Loan Agreement, Vivakor issued a secured promissory note worth $3,670,160.77, with the Lenders agreeing to provide a term loan with a maturity date set for October 31, 2025. The Company received the net proceeds from the Term Loan on November 5 and 6, 2024, following deductions for various items including an origination fee, repayment of an outstanding principal, accrued interest, and a prepayment fee from a prior agreement. The interest rate on the loan is set at 22%, and monthly payments of $343,506.42 are expected to commence from November 30, 2024.

In the event of prepayment, a ten percent prepayment premium on the outstanding principal amount of the Term Loan will be applicable. Additionally, if Vivakor raises $10,000,000 or more from equity sales, excluding related to any acquisitions or mergers, it will be required to offer to prepay the entire outstanding balance of the Term Loan.

The funds borrowed under the Loan Agreement are secured by the present and after-acquired assets of the Company and its Subsidiaries. The Company’s obligations are jointly and severally guaranteed by most of the Subsidiaries. The agreement also includes standard representations, warranties, and financial covenants common for this type of loan, subject to customary closing conditions.

To secure the loan, Vivakor issued 300,000 shares of its common stock, restricted under Rule 144, to the Lender. Additionally, an irrevocable letter was sent to the Transfer Agent to reserve 3,000,000 shares of the Company’s common stock as collateral until the Term Loan is fully repaid.

This summary outlines the key aspects of the Loan Agreement. For comprehensive details, refer to the full text of the Loan Agreement and its exhibits attached to the 8-K SEC Filing Exhibit 10.1.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Vivakor’s 8K filing here.

About Vivakor

Vivakor, Inc operates, acquires, and develops technologies and assets in the oil and gas industry and related environmental solutions in the United States and Kuwait. The company owns and operates a crude oil gathering, storage, and transportation facility in Delhi, Louisiana. It also owns a crude oil storage tank located near Colorado City, Texas.