Empire Diversified Energy Inc. (OTC:MPIR) Stock In Focus After Recent News
One of the more important announcements on Monday was made by Vivakor Inc., the company involved in the acquisition and development of clean energy environmental solutions and technologies. The company announced that it had inked a definitive agreement as well as a plan of merger with Empire Diversified Energy Inc. (OTC:MPIR), a diversified energy company with interests in logistics and sustainable energy.
The merger agreement had been approved by the boards of directors of both companies. As per the provisions of the agreement, Vivakor would pick up all the outstanding shares of the common stock and preferred stock in Empire diversified on an as-converted basis. The transaction would be completed in exchange for 67200000 shares of Vivakor common stock. Following the conclusion of the merger, Empire Diversified would become a fully owned subsidiary of Vivakor. After the closure, 5040,000, or 7.5% of the consideration shares, would be kept in escrow for 12 months. The purpose of that move would be to indemnify Vivakor as well as its shareholders for the warranties, covenants, and representations of Empire in the merger agreement.
It was also noted that Empire Diversified would have a minimum of 65% of the consideration shares, or 43680000, as part of a lock-up agreement for a period of 12 months since the conclusion of the merger. There would also be certain restrictions on insider sales for the period. At the time of the closure, Empire Diversified would need to have at least $2.5 million in unrestricted cash on hand.
The cash amount would be available to Vivakor following the end of the merger. It was also noted that the closure of the merger would also be dependent on the approval of the transaction from the shareholders of the two companies. It may be a good time to keep an eye on Vivakor.
