Vivakor Inc. (NASDAQ: VIVK) completed a private placement of convertible promissory notes, raising $12 million in gross proceeds from institutional investors, according to a company press release. The six-month notes have a principal amount of $15 million including the original issuance discount.

The energy services company plans to use the proceeds to reduce outstanding debt and liabilities, support working capital, and advance commissioning of its Remediation Processing Center in Houston, Texas. The funding will also support the company's transportation, logistics, storage, and marketing operations.

"This offering reflects continued institutional support for Vivakor's long-term strategy and the progress we have made in strengthening and integrating our operational platform," said Chairman and CEO James Ballengee.

Vivakor also entered into a standby equity purchase agreement to provide additional financial flexibility for strategic initiatives. RBW Capital Partners LLC, a division of Dawson James Securities Inc., served as placement agent for the offering.

The notes and any common shares issuable upon conversion have not been registered under the Securities Act of 1933 and were offered only to accredited investors. The company will file additional transaction details in a Form 8-K with the Securities and Exchange Commission.

Vivakor operates energy transportation, storage, reuse, and remediation services, including one of the largest oilfield trucking fleets in the continental United States. The company provides crude oil and produced water gathering, storage, transportation, reuse, and remediation services under long-term contracts.