Camber Energy CEI Stock News

Camber Energy Inc (NYSEAMERICAN: CEI) is running for the top in the market this morning, up more than 30% before the opening bell. Investors are excited after the company announced the planned acquisition of Viking Energy Group (VKIN). Here’s the scoop:

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CEI To Acquire VKIN

In a press release issued early this morning, Camber Energy announced that it is planning an acquisition. According to the release, the company signed a non-binding letter of intent with Viking Energy Group surrounding a proposed merger.

Under the merger, CEI would acquire VKIN. To do so, the company will issue new shares of common stock to the equity holders of viking. Once the closing is complete, 100% of outstanding securities of Viking will be sold to CEI. At the end of the transaction, Viking shareholders will own about 85% of the company.

It is expected that the negotiation and execution of a definitive agreement will take place by February 17, 2020. Of course, completion of the merger is ssubject to several funding, customary, and regulatory closing conditions.

In a statement, James Doris, President and CEO at VKIN, had the following to offer:

Our company is excited about the proposed merger. We believe the transaction will help broaden our shareholder base, improve liquidity and provide increased visibility to the institutional investor community, which ultimately should contribute to increased shareholder value.

The above statement was followed up by Louis G. Schott, Interim CEO at CEI. Here’s what he had to say:

We are very pleased with this prospective merger. Viking has demonstrated an ability to transact and execute, in particular in a challenging environment. Combining Viking’s business strategy and operational expertise with the Camber platform should create substantial value for Camber.

This Is Exciting News

At the end of the day, if the merger closes, the move will be huge for both Camber Energy and for Viking. As far as CEI is considered, the company will have access to assets and oil reserves that it has not had access to before, ultimately strengthening its business.

Viking on the other hand, will gain access to the NASDAQ, opening the doors to investment dollars that simply aren’t available to companies traded on the OTC. All in all, this is a win/win for all involved!

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