Camber Energy Inc (NYSEAMERICAN: CEI) is having an incredible day in the market today after the company announced news of a Stock Purchase Agreement yesterday. Of course, this led to excitement among investors, sending the stock skyward and prompting an alert from our partners at Trade Ideas. Currently (10:59), CEI is trading at $0.18 per share after a gain of $0.02 per share or 14.38% thus far today.
CEI Gains On Stock Purchase Agreement
As mentioned above, Camber Energy is having a great day in the market today after the company announced a Stock Purchase Agreement yesterday. The agreement was signed with an institutional investor that remains unnamed.
Under the terms of the agreement, the investor has purchased 212 shares of Series C Preferred stock. These shares were purchased on the closing date of the agreement, which was October 5th. The shares were purchased for a total of $2 million. The investor also agreed to the purchase of 106 Series C Preferred shares at a price of $1 million 10 days after the initial closing. 10 days after the second closing, 105 shares of Series C Preferred stock will be purchased at a price of $1 million. 10 days after the third closing, another 105 shares of Series C Preferred Stock will be purchased at a price of $1 million. Another 105 shares of Series C Preferred Stock will be purchased at a price of $1 million 10 days after the fourth closing.
As the agreement continues, more shares will be purchased. 30 days after the fifth closing, 525 shares of Series C Preferred stock will be purchased at a price of $5 million. Finally, 30 days after the sixth closing the final 525 shares of Series C Preferred stock will be purchased at a price of $5 million.
In the PR, CEI said that the company plans to use the funds generated through the sale for working capital, workovers on existing walls, drilling and completion of additional wells, repayment of vendor balances and payments to its senior lender; all in anticipation of regaining compliance. In a statement, Richard Azar, Interim CEO at CEI, had the following to offer:
“This financing represents a significant milestone for our business.. We believe the capital will provide the Company with sufficient runway to execute its immediate business objectives, which in turn will drive shareholder value. We have a detailed strategic plan that we believe will facilitate the growth and expansion of our business, and securing $16 million in financing is the first step in the execution of that plan.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CEI. In particular, we’ll be following the news surrounding Camber’s attempt to regain compliance. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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