Vivakor CFO Tyler Nelson secures new employment deal By Investing.com

Vivacor, Inc. (NASDAQ:VIVK), a Nevada-based company specializing in waste systems, has announced the signing of a new employment agreement with its Chief Financial Officer, Tyler Nelson, on June 13, 2024. The new agreement follows a series of changes in 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 enterprise value on certain qualifying transactions.

Specifically, Nelson will receive a bonus of $200,000 for each of the closings 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 paid in full by December 31, 2024, the balance will be due.

Additionally, Nelson was granted stock options as part of the settlement. He received 917,825 stock options with an exercise price of $1.80 per share, which fully vested as of June 9, 2024.

Nelson, who joined Vivakor as part-time CFO in 2014 and became full-time in 2020, has also 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 consulting.

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 and no-cause termination and resignation provisions.

This announcement is based on 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 will begin in the third quarter of 2025 at the Port of West Virginia industrial park, transforming food waste into renewable hydrogen and carbon using HelioStorm™ technology Heartland.

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 into an agreement to acquire Endeavor Crude, LLC and certain related entities for a total of $120 million.

This acquisition, which is expected to close at the end of the fiscal quarter ending June 30, 2024, includes entities operating in the logistics, gathering, storage and transportation services of oil.

These latest 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

Vivacor, Inc. (NASDAQ: VIVK ) continues to demonstrate significant market dynamics, as evidenced by the latest 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 since Q1 2024. However, a closer look at the financial metrics reveals that Vivakor operates with a significant debt burden and has poor gross profit margins of 7.65%, which may raise concerns about the company’s financial health and viability.

InvestingPro Tips suggests that shares of Vivakor are currently in overbought territory according to the Relative Strength Index (RSI), which could indicate a possible reversal in the stock’s recent upward trajectory. Additionally, the company’s short-term liabilities exceed its liquid assets, highlighting a potential liquidity risk. Investors considering Vivakor stock should be aware of these financial challenges, even as the company moves forward with strategic initiatives such as the hydrogen project and new acquisitions.

Despite these financial challenges, Vivakor has seen a strong return over the past year, with a total price return of 62.8% for the year. The stock is also trading near its 52-week high, at 94.74% of that high, reflecting investor confidence following the company’s recent developments. For those looking to dig deeper into the financial health and performance of Vivakor shares, there are additional InvestingPro Tips available at https://www.investing.com/pro/VIVK which can provide further insight into the decisions of investment. By using the coupon code PRONEWS24investors can receive an additional 10% discount on an annual or two-year 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 closely monitor Vivakor’s financial metrics and market performance to make informed decisions consistent with their investment goals.

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