Vivakor Inc (NASDAQ:VIVK) shares added more than 23% after it announced a merger with Empire Diversified Energy, a West Virginia-based energy and logistics holding company, for a combined enterprise value of approximately $250 million.
"This is a significant milestone for our company and we believe accelerates our vision to build a state-of-the-art, clean energy and remediation technologies company,” Vivakor CEO James Ballengee said.
He highlighted the company’s excitement about synergies and opportunities presented by the merger, including infrastructure for expansion and accelerated revenue growth.
“Upon a successful closing of the merger, we intend to construct and deploy our fourth Remediation Processing Center (RPC IV) at The Port of West Virginia, where Empire currently operates, as well as integrate our transportation and midstream assets into existing operations,” he said.
The company highlighted that Empire operates an eco-industrial complex on the Ohio River with nearly 1,000 acres of contiguous lands. It deploys a range of innovative and sustainable technologies serving the transportation, recyclable waste, steel, warehousing, and other energy sectors to help decarbonize the region.
It also pointed out that Empire’s flagship waste-to-energy pyrolysis plant, designed to recycle 70 tons of plastics per day through a pyrolysis process that employs high heat in the absence of oxygen, is slated to come on-line in the second fiscal quarter of 2024.
Under the merger agreement, Vivakor will acquire all of Empire’s common and preferred stock on an as-converted basis for a net consideration of 67,200,000 shares.
Upon closing, Empire will become a wholly-owned subsidiary of Vivkaor.
It is anticipated that the merger will close by the end of the fiscal third quarter, ending September 30, 2024, subject to satisfying certain conditions.
“We look forward to moving this merger toward a closing by the end of September and will update shareholders and the Wall Street community as we continue our progress,” CEO Ballengee said.
Shares of Vivakor added 23.4% at US$1 late morning on Monday on the news.
Vivakor is a clean energy technology company focused on the oil remediation and natural resources sectors.