Vivakor, Inc. (NASDAQ:VIVK), a Nevada-based company specializing in refuse systems, has announced the signing of a new employment agreement with its Chief Financial Officer, Tyler Nelson, on June 13, 2024. The new agreement comes after a series of amendments to Nelson's original contract, extending his tenure and adjusting his compensation package.
Under the new agreement, Nelson will receive an annual base salary of $450,000, with the potential for cash and equity incentive bonuses ranging from 50% to 120% of his base salary. Additionally, Nelson is eligible for a Transaction Bonus of 0.5% of the enterprise value for certain qualified transactions.
Specifically, Nelson will receive a $200,000 bonus for each of the closing of the Merger Agreement with Empire Energy and the Membership Interest Purchase Agreement with Endeavor Crude, LLC, half in cash and half in common stock.
In connection with the new employment contract, Vivakor and Nelson also entered into a settlement agreement addressing compensation owed to Nelson. The company agreed to a promissory note in the amount of $1,167,750, representing accrued salary and bonuses plus interest, which will be paid through future financings or transactions. If not fully paid by December 31, 2024, the remaining balance will be due.
Moreover, Nelson was granted stock options as part of the settlement. He received 917,825 stock options at an exercise price of $1.80 per share, which were fully vested as of June 9, 2024.
Nelson, who joined Vivakor as a part-time CFO in 2014 and became full-time in 2020, also has served on the company's Board of Directors since January 2023. His background includes work with Deloitte LLP and KSJG, LLP, with experience in public company accounting and financial consultation.
The new employment agreement is set for an initial two-year term with automatic one-year renewals unless terminated with 90 days' notice. It includes standard cause and without cause termination and resignation provisions.
This announcement is based on the information provided in a recent SEC filing by Vivakor.
In other recent news, Vivakor Inc. has announced a collaborative hydrogen project with Empire Diversified Energy, Inc., which is set to begin in Q3 2025 at the Port of West Virginia industrial park, transforming food waste into renewable hydrogen and carbon using Heartland's HelioStorm™ technology.
In addition to these developments, Vivakor has regained compliance with Nasdaq's minimum bid price requirement, marking a resolution to a previous compliance issue. On the acquisition front, the company has entered an agreement to acquire Endeavor Crude, LLC and several related entities for a total of $120 million.
This acquisition, expected to close by the end of the fiscal quarter ending June 30, 2024, includes entities operating in oil logistics, gathering, storage, and transportation services.
These recent developments reflect Vivakor's ongoing strategic efforts in energy and waste management solutions. As always, investors are advised to consider these updates in light of their individual investment strategies and goals.
InvestingPro Insights
Vivakor, Inc. (NASDAQ:VIVK) continues to demonstrate significant market dynamics, as evidenced by recent data from InvestingPro. With a market capitalization of $50.98 million, the company's financial landscape is characterized by a notable revenue growth of 36.99% over the last twelve months as of Q1 2024. However, a closer look at the financial metrics reveals that Vivakor operates with a substantial debt burden and has weak gross profit margins of 7.65%, which may raise concerns about the company's financial health and sustainability.
InvestingPro Tips suggest that Vivakor's stock is currently in overbought territory according to the Relative Strength Index (RSI), which could indicate a potential reversal in the stock’s recent upward trajectory. Additionally, the company's short-term obligations exceed its liquid assets, highlighting a potential liquidity risk. Investors considering Vivakor's stock should be aware of these financial challenges even as the company pushes forward with strategic initiatives such as the hydrogen project and new acquisitions.
Despite these financial challenges, Vivakor has seen a strong return over the last year, with a one-year price total return of 62.8%. The stock is also trading near its 52-week high, at 94.74% of that peak value, reflecting investor confidence following recent company developments. For those looking to delve deeper into Vivakor's financial health and stock performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/VIVK, which could provide further insights into investment decisions. With the use of the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 12 InvestingPro Tips for Vivakor.
As the company moves forward with its strategic plans, investors should keep a close watch on Vivakor's financial metrics and market performance to make informed decisions aligned with their investment goals.
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