Vivakor, Inc. (NASDAQ:VIVK), a company specializing in refuse systems, announced on Monday that it has entered into a purchase agreement with ClearThink Capital Partners, LLC to secure an equity line of credit (ELOC) worth up to $5 million. This strategic move allows Vivakor to sell shares of common stock in tranches, subject to certain conditions.
Under the terms of the agreement, each tranche request by Vivakor is capped at the lesser of $1 million or 500% of the average daily trading volume for the 10 days preceding the request. The minimum tranche size is set at $25,000, with a mandatory 10-trading-day interval between requests, unless both parties agree otherwise. The agreement also stipulates that ClearThink's ownership cannot exceed 9.99% of Vivakor’s outstanding common stock.
Concurrently, Vivakor disclosed the sale of unregistered equity securities to investor James K. Granger, who purchased 1.6 million common shares at a price of $0.50 per share, amounting to an $800,000 investment. The transaction, which took place on July 26, 2024, is subject to Rule 144 restrictions, with Granger completing the cash payment on July 31, 2024.
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