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DALLAS – Vivakor Inc. (NASDAQ:VIVK), a clean energy technology company, today announced that it has entered into a definitive merger agreement with Empire Diversified Energy, Inc. (OTC Pink:MPIR). The merger was unanimously approved by both companies' boards of directors, and Empire will become a wholly owned subsidiary of Vivakor.
Vivakor will acquire all outstanding shares of Empire common stock and preferred stock for a net amount of 67,200,000 shares of Vivakor common stock. Of these, 5,040,000 shares will be held in escrow for compensation purposes for 12 months after closing. In addition, 65% of the shares are subject to a 12-month lock-up agreement and are subject to certain insider selling restrictions. Empire is also required to have a minimum of $2.5 million in unrestricted cash upon closing.
The merger is subject to approval by each company's stockholders, a satisfactory fairness opinion to Vivakor, and valid registration of the consideration shares. Estimated completion is by the end of the third fiscal quarter ending September 30, 2024.
Vivakor Chairman and CEO James Ballengee expressed enthusiasm for the merger, saying the combination aligns with the company's vision to build a leading clean energy and remediation technology company. Following the merger, Vivakor plans to build his fourth remediation processing center at the Port of West Virginia, where Empire operates, and consolidate transportation and midstream assets.
Empire's operations at the Port of West Virginia include a trimodal terminal facility and a waste-to-energy pyrolysis plant, which is expected to be operational in the second quarter of 2024. The plant aims to recycle 70 tonnes of plastic per day and produce salable by-products. . In addition, Empire is part of a consortium selected to receive funding for clean hydrogen projects in the Appalachian region.
The merger is expected to generate synergies that will accelerate Vivakor's expansion and accelerate revenue growth. The company also aims to leverage Empire's sustainable energy and logistics businesses to strengthen its clean energy technology portfolio.
The information contained in this article is based on the press release.
Investment Pro Insights
As Vivakor Inc. moves forward with its strategic merger with Empire Diversified Energy, Inc., investors and stakeholders are focusing on financial metrics that could impact the company's future performance. According to data from InvestingPro, Vivakor's P/E ratio for the trailing twelve months ending in Q4 2023 was 28.81, which indicates the level at which the market values each dollar of the company's earnings. Additionally, the company's PEG ratio for the same period was 1.77, which may suggest expectations for future growth compared to current earnings situation.
InvestingPro Tips highlights that Vivakor has been profitable over the past 12 months, which is an encouraging sign for investors looking for stability and growth potential in the clean energy space. Additionally, the company has a track record of maintaining dividends for 32 consecutive years, providing a certain level of income security for shareholders. This consistent performance is highlighted by his dividend yield of 1.17% as of the latest data.
For those interested in deeper analysis, InvestingPro offers additional tips on Vivakor, including insights into management's share buybacks, stock volatility, and liquidity. To access these insights and more, visit https://www.investing.com/pro/VIVK and don't forget to use the coupon code. pro news 24 Get an extra 10% off annual or biennial Pro and Pro+ subscriptions. Five more InvestingPro Tips are now available on the platform, giving you a comprehensive look at Vivakor's financial health and market position.
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