Vivakor, Inc. (NASDAQ: VIVK) is engaged as a clean energy technology company, with a specific focus on oil remediation and natural resources. Shares of the clean energy tech company are skyrocketing 118% through early trading on Wednesday, April 27, 2022. Over the past three months, Vivakor has seen average daily volume of 181,380 shares. However, volume of 63.49 million shares or dollar volume of around $224.12 million, has already exchanged hands through early trading.
Shares of Vivakor are soaring after the company announced that it was awarded a 10-year contract valued up to $250 million by Hot Oil Transport, LLC, a supplier of asphalt materials. Under the terms of the agreement, Vivakor can provide Hot Oil Transport up to 50,000 tons of ratable asphalt cement from its Vernal, Utah facility. The facility is currently undergoing upgraded to increase production capacity, which is adding three additional Remediation Processing Centers as well as other critical infrastructure. The upgrades will have an estimated cost of $18 million.
Vivakor will be paid based on the asphalt wholesale index price for the Rocky Mountain region at time of delivery. With the current index range of $510 to $600 per ton, the contract has the ability to generate between $25 million and $30 million annually.
“As this is our first long-term contract for sale of our asphaltic binder, it is an important milestone for Vivakor. We have worked closely with HOT to refine our product to meet their specifications,” said Matt Nicosia, CEO of Vivakor. “We have already produced tonnage of asphaltic cement with our Vernal, Utah RPC and believe that by the end of the year we will have ramped up our infrastructure to include three additional RPCs to operate the site to the level required to fulfill the full amount of material requested by HOT on an annualized basis. This could be a significant event for shareholders as this project, when fully scaled, could contribute meaningful profits.”
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