$Camber Energy(CEI)$What is going on with Camber Energy (NYSEMKT:CEI) today? Shares of the embattled energy company closed up over 30% after CEO James Doris released a company update to shareholders. After hitting a 52-week high of $4.85, shares of CEI stock have since declined severely to less than 60 cents. However, shareholders are hanging on to Doris’ update as a glimmer of hope.
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CEI Stock: CEO Releases Company Update
So what did Doris share?
Well, the CEO provided information concerning Camber Energy for the past 120 days. For starters, Camber filed a reinstated earnings report to the U.S. Securities and Exchange Commission (SEC) last November. The SEC required Camber to file an updated version of its earnings because the company had to “correct the previous characterization of the sale of the company’s Series C preferred stock.” In addition, Camber “extinguished” 40% of its Series C preferred shares to minimize stock dilution.
Doris also explained that the company improved the terms of its promissory notes by extending their maturity date and reducing the interest rate. The conversion price for these notes is $1.50.
VKIN Stock: CEO Provides Updates to Viking Energy
Furthermore, Doris reported several updates related to Viking Energy (OTCMKTS:VKIN). As a refresher, Camber owns a 73% stake in VKIN stock. Doris explained that Viking strengthened its balance sheet by reducing its debt by more than $100 million. To achieve this, the company sold “divisions that were subject to high-interest loans” and hedges that limited upside.
Additionally, Viking made several business arrangements during the past 120 days. First, the company acquired a controlling stake in Simson-Maxwell, an 80-year-old business that operates in the custom-energy and power solutions industry. Second, the energy company acquired 51% ownership in entities that own the intellectual property to “Electric Transmission and Distribution Open Conductor Detection Systems.” This system can detect a break in a power line and de-energize the line before it damages anything. Finally, Viking licensed carbon-capture technology that is designed to align with environmental, social, and governance (ESG) goals.
It was also reported that some of Viking’s transaction partners have accepted VKIN stock as consideration. Doris touted this move as evidence that Viking’s partners are confident in the company’s long-term vision.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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