Vivakor wants to buy a company for $40 million. The market values Vivakor at about $185,000.
The 9:00 AM ET release is a non-binding Letter of Intent to acquire 100% of Direct Midstream. The price is 4x Direct Midstream's targeted 2027 free cash flow of $10 million.
Targeted. 2027. The multiple rests on a number that does not exist yet, for a deal that binds nobody yet.
$VIVK is +12.47% pre-market. Vivakor's own record is on file. On 16 prior sessions when it opened at least 5% higher, it closed below the open 81% of the time. The median move from open to close was -9.79%. That describes 16 past sessions of one ticker and nothing more.
The release also includes a $10 million capital investment by Vivakor. That figure alone is more than fifty times what the market says the buyer is worth.
Compare that verb with #OFAL. This morning OFA Group announced it completed the acquisition and title registration of the Tokawa Coastal Property in Choshi, Japan. One headline describes a registered deed. The other describes a letter of intent. Both headlines use the word "acquisition," and they sit at opposite ends of the process.