Olenox Industries Amends Acquisition Agreement with Vivakor for $36M

Olenox Industries (OLOX) has amended its Letter of Intent with Vivakor (VIVK), to acquire the midstream business and transportation assets of its wholly owned subsidiary CPE Gathering MidCon, owner and operator of the Omega pipeline system, an integrated crude-oil gathering, transportation, terminaling and pipeline connection platform serving the Oklahoma STACK play. As mentioned in the Company's prior release of January 29, the parties targeted a closing date on or before March 31. In furtherance of continual diligence and in light of the respective companies audit requirements, the parties have revised the projected closing date to April 30, but in no event later than May 15. CPE Gathering operates the Omega system, an on-basin midstream platform that provides crude gathering, transportation, terminaling and pipeline connectivity in the STACK region of Oklahoma. Omega is positioned to generate fee-based cash flows, reduce hauling and terminaling costs for producers, and provide a scalable on-ramp for technology and services that improve uptime and lower operating expenses. The transportation assets also offer producers flexible, cost-competitive gathering and transport to a network of storage and blending facilities and pipeline injection points. The transaction, valued at approximately $36M, will be paid in a combination of cash, promissory note, common and preferred stock, and is based on $4.56M in annual EBITDA, pursuant to a take-or-pay guarantee of Vivakor.