Vivakor Signs Term Sheet for $40M Commodity Intermediation Credit Facility to Support Crude Oil Trading

Vivakor Inc. (NASDAQ:VIVK) is one of the Reddit stocks that will go to the moon. On October 15, Vivakor announced the signing of a non-binding term sheet with an undisclosed wholesaler. The agreement is for the establishment of a $40 million commodity intermediation credit facility. The proposed facility is intended to provide additional credit support for Vivakor’s crude oil trading platform.

The proposed arrangement, known as a commodity intermediation facility, is designed to function as a working capital and credit support mechanism for physical crude oil transactions conducted by Vivakor Supply & Trading, LLC/VST. Under the terms of the Facility, the wholesaler will act as an intermediary for VST’s commodity trading activities, providing credit support to sellers of physical commodities.

Vivakor Signs Term Sheet for $40M Commodity Intermediation Credit Facility to Support Crude Oil Trading

This support may include letters of credit, surety bonds, cash deposits, and/or guarantees. VST would retain the responsibility for arranging transportation, logistics, and gathering operations for the purchased commodities, as well as coordinating their subsequent sale to buyers. VST expects to utilize the midstream logistics capabilities of its affiliates, including its trucking fleet, network of crude oil stations and terminal facilities, and its gathering pipeline asset.

Vivakor Inc. (NASDAQ:VIVK) operates, acquires, and develops technologies and assets in the oil & gas industry in the US and Kuwait. It operates through Trucking logistics services and Terminaling & storage product & services segments.

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Disclosure: None. This article is originally published at Insider Monkey.