Camber Energy CEI Stock News

Camber Energy Inc (NYSEAMERICAN: CEI) is hitting the ground running in the market this morning, trading on gains of more than 6% premarket. The gains come after the company filed audited financial information surrounding its acquisition of Lineal Star Holdings.

However, the Lineal acquisition isn’t the only reason for all of the excitement. Here’s what’s going on:

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CEI Files Lineal Star Audited Financial Data

Those who follow Camber Energy know that the company recently acquired Lineal Star Holdings. While the acquisition led to quite a bit of concern, the company issued an SEC filing this morning, largely alleviating any financial concerns associated with the acquisition.

After reading the filing in its entirety, the first thing that really caught my attention had to do with the purchase price, and the bargain that CEI received in the deal. The company acquired Lineal Industries at a price of $2.35 million.

The acquisition took place through a payment of $1.175 million in cash and a 5% $1.175 million promissory note. Annual interest on the note is only due until its maturity on July 30, 2021. Once the deal closed, CEI received $850,591 in cash from Primoris to settle liabilities previously accrued by Lineal Industries prior to the closing of the deal.

The deal ultimately came with a bargain purchase gain of $1,162,075. This bargain price gain is based on the excess value of the net assets acquired by Camber over the consideration transferred.

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