Camber Energy CEI Stock News

Camber Energy Inc (NYSEAMERICAN: CEI) is climbing in the market this morning, trading on gains of more than 13% with strong volume. The excitement comes after the company announced that it has entered into a definitive agreement surrounding the merger with Viking Energy Group. Here’s what’s going on:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

CEI Announces Viking Merger News

In a press release issued early this morning, Camber Energy said that it has provided financing of $5 million toward the recent acquisition by Viking of additional oil and gas properties in Texas and Louisiana. Moreover, both parties have entered into a definitive Agreement and Plan of Merger.

The agreement was entered into on February 3, 2020 and surrounds the proposed acquisition of Viking by CEI. You can find a copy of the merger agreement here.

As part of the agreement, Camber said it will issue new shares of common stock that will result in equity holders of viking having an 80% interest in the combined company. In return, CEI will receive 100% of the outstanding equity securities of Viking through a reverse triangular merger. Following the merger, Viking will survive as a wholly-owned subsidiary of Camber Energy.

Is is just about always the case, completion of the merger is subject to conditions. These conditions include but are not limited to the receipt of all required regulatory, corporate and third-party approvals. This includes the approval of shareholders of both companies.

Other conditions include Camber providing a $5 million loan to Viking (which has already taken place) and Viking assigning 25% interest in its subsidiary Elysium Energy Holdings to CEI.

CEI has also agreed to update its Board of Directors. The new Board will include five members, one former member of the CEI Board and four former members of the Viking Board.

In a statement, Louis G. Schott, Interim CEO at CEI, had the following to offer:

We are very excited about moving forward to complete the merger and with the potential opportunities that Viking brings in connection with the recent acquisition of Elysium.

Why Investors Are Pumped!

Investors are loving the news for good reason. At the end of the day, while Viking Shareholders will receive 80% of the combined company, the acquisition will bring a new talented team to the table, several new assets, and ultimately increase the value of the combined entity more than either one of the parts could have done alone.

At the end of the day, the merger will add great value, and growth in value is just what investors in CEI or any other stock are looking for.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Don’t Miss The Next Big Story!

Join our free mailing list below to receive real-time news alerts!

Subscribe Today!

* indicates required


LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.