Vivakor Issues 1M Shares to 01 Energy & Transportation for $1M
Ticker: VIVK · Form: 8-K · Filed: Feb 2, 2024 · CIK: 1450704
| Field | Detail |
|---|---|
| Company | Vivakor, INC. (VIVK) |
| Form Type | 8-K |
| Filed Date | Feb 2, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $1,000,000 |
| Sentiment | mixed |
Complexity: simple
Sentiment: mixed
Topics: equity-issuance, capital-raise, unregistered-sale, dilution
TL;DR
**Vivakor just sold 1M shares for $1M, watch for dilution.**
AI Summary
Vivakor, Inc. (VIVK) entered into a significant agreement on December 5, 2023, issuing 1,000,000 shares of its common stock to 01 Energy & Transportation. This transaction, valued at $1,000,000, was part of an unregistered sale of equity securities. This matters to investors because it indicates Vivakor is raising capital by issuing new shares, which can dilute the value of existing shares if not used to generate substantial future growth.
Why It Matters
This filing reveals Vivakor is raising capital through stock issuance, which could dilute existing shareholder value but also fund future growth initiatives. Investors should monitor how this capital is deployed.
Risk Assessment
Risk Level: medium — The issuance of new shares can dilute the ownership stake and value of existing shareholders, posing a medium risk if the capital isn't effectively utilized.
Analyst Insight
A smart investor would closely monitor Vivakor's upcoming financial reports to see how the $1,000,000 raised from the stock issuance is being utilized and if it leads to tangible growth or increased profitability, offsetting potential dilution.
Key Numbers
- $1,000,000 — Value of Common Stock Issued (The total value of the shares Vivakor issued to 01 Energy & Transportation.)
- 1,000,000 — Shares of Common Stock Issued (The number of common shares Vivakor issued in this transaction.)
Key Players & Entities
- Vivakor, Inc. (company) — registrant issuing shares
- 01 Energy & Transportation (company) — recipient of issued shares
- $1,000,000 (dollar_amount) — value of the common stock issued
- December 5, 2023 (date) — date of the earliest event reported
Forward-Looking Statements
- Vivakor's stock price (VIVK) may experience short-term volatility due to potential dilution concerns. (VIVK) — medium confidence, target: 2024-03-01
- Vivakor will use the $1,000,000 raised to fund specific operational expansions or new projects. (Vivakor, Inc.) — medium confidence, target: 2024-06-30
FAQ
What was the earliest event reported in this 8-K filing?
The earliest event reported in this 8-K filing was on December 5, 2023, which is the date Vivakor, Inc. entered into a material definitive agreement.
Which entity received the common stock from Vivakor, Inc.?
01 Energy & Transportation received 1,000,000 shares of common stock from Vivakor, Inc. as part of this agreement.
What was the total value of the common stock issued by Vivakor, Inc. in this transaction?
The total value of the common stock issued by Vivakor, Inc. was $1,000,000.
Under which SEC Act was this 8-K filed?
This 8-K was filed under the Securities Exchange Act of 1934, pursuant to Section 13 or 15(d).
What type of transaction was the issuance of equity securities by Vivakor, Inc.?
The issuance of equity securities by Vivakor, Inc. was an unregistered sale of equity securities.
Filing Stats: 612 words · 2 min read · ~2 pages · Grade level 12.1 · Accepted 2024-02-02 16:44:16
Key Financial Figures
- $1,000,000 — rincipal amount of one million dollars ($1,000,000) and, in connection therewith, the Comp
Filing Documents
- vivakor_8k.htm (8-K) — 33KB
- 0001829126-24-000700.txt ( ) — 203KB
- vivk-20231205.xsd (EX-101.SCH) — 3KB
- vivk-20231205_lab.xml (EX-101.LAB) — 33KB
- vivk-20231205_pre.xml (EX-101.PRE) — 22KB
- vivakor_8k_htm.xml (XML) — 4KB
01
Item 1.01 Entry into a Material Definitive Agreement On December 5, 2023, Vivakor, Inc. (the "Company") received a loan from an individual lender in the principal amount of one million dollars ($1,000,000) and, in connection therewith, the Company (the "Loan") and agreed to issue 100,000 restricted shares of the Company's common stock. The Loan bears interest at the rate of 10% per annum, matures on December 31, 2024, has been personally guaranteed by James Ballengee, the Company's Chief Executive Officer. The lender is not a related party or affiliate of the Company.
01 of this Current Report on Form 8-K contains
Item 1.01 of this Current Report on Form 8-K contains only a brief description of the material terms of and does not purport to be a complete description of the rights and obligations of the parties to the agreements in connection with the Loan (the "Agreements"), and such description is qualified in its entirety by reference to the full text of the Agreements, which will be filed as exhibits to the Company's Annual Report on Form 10-K for the period ending December 31, 2023. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
02. Unregistered Sales of Equity Securities
Item 3.02. Unregistered Sales of Equity Securities. To the extent required by this Item 3.02, the information contained in Item 1.01 is incorporated herein by reference. The Company relied on the exemption provided for under Section 4(a)(2) for the issuance of the 100,000 restricted shares of its common stock as the investor is an accredited investor and familiar with the Company's operations. 1
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. VIVAKOR, INC. Dated: February 2, 2024 By: /s/ James Ballengee Name: James Ballengee Title: Chief Executive Officer 2