Recently, I’ve been doing quite a bit of coverage of Breeze Holdings Acquisition Corp. (NASDAQ: BREZ), and for good reason. The company plans to acquire True Velocity Ammo relatively soon. If you’ve been following along, you already know that. 

But there’s something you might not know. 

As we await the closing of the deal, TV Ammo continues to make big moves. In fact, the company issued a press release just this morning to announce a strategic development partnership. Here’s what’s happening:

TV Ammo Enters Partnership With FN America

In the press release, TV Ammo said that it entered into a strategic partnership with FN America that will enable one of the most prolific machine guns in the world, the M240, to fire composite-cased cartridges with minor changes (including a barrel change. Of course, this will reduce the weight of ammunition for the M240 significantly, giving American soldiers the upper-hand in battle. 

The two companies have already moved forward with an extensive First Article Test of the conversion kit at FN’s Columbia, SC, facility. That test started on May 8, 2023. That test will include shooting 30,000 rounds of True Velocity’s 6.8TVCM ammunition through a single M240 weapon system that has been chambered for the proprietary cartridge. 

Once the companies complete the first test, they plan on beginning an additional 50,000-round endurance test to fully qualify the M240 chambereed for True Velocity’s 6.8 TVCM cartridge. 

In a statement, Kevin Boscamp, Chairman and co-CEO at True Velocity, had the following to offer:

“This is the tip of the iceberg. We are working with top weapon manufacturers like FN America to change the paradigm for our soldiers and ensure that they have access to the very best technology that America has to offer. This level of innovation will not only breathe new life into a fantastic weapon system like the M240, but it opens the door to entirely new systems like True Velocity’s .338 Norma Lightweight Medium Machine Gun.”

The above statement was followed up by Chris Tedford, co-CEO at True Velocity. Here’s what he had to say:

“The performance implications of this ‘switch-barrel’ capability are eclipsed only by the magnitude of the business opportunity associated with it. We’re talking about improving the effective range of one of the most prolific machine guns in the world by as much as 50 percent, providing our warfighters with a significant advantage on the battlefield.“

Final Thoughts

I’ve been impressed with what True Velocity is doing for our soldiers ever since I found, and started following, Breeze Holdings Acquisition Corp. Today’s announcement only serves to solidify my positive view of the company. If you haven’t started paying attention yet, now is the time to do so. 

Article Resources

• https://finance.yahoo.com/news/true-velocity-partners-fn-america-120000999.html 

Disclosure: CNA Finance is not an investment advisor or broker-dealer. This article is not a solicitation to buy or sell any security and was designed for information purposes only. This article was written by Joshua Rodriguez and shares his true opinion, which may not be the opinion of the publication it appears on. Joshua Rodriguez holds no positions in any security mentioned herein and has no intentions of opening positions within the next 72 hours. This publication was sponsored by Global Advertising Agency and should not be considered investment advice. Trading and investing in stocks involve risk. CNA Finance suggests you speak with your personal financial advisor or investment advisor before making any investment decisions. 

Lately, I’ve taken an interest in SPACs, or Special Purpose Acquisition Companies. Also known as blank check companies, SPACs pool money from a wide range of investors and use that money to acquire companies and assets in what amounts to take-public transactions. 

In my research of current SPAC opportunities, I came across Breeze Holdings Acquisition Corp. (NASDAQ: BREZ). The company has an impressive C-suite and plenty of access to capital to play ball, but let’s face it, the SPAC is all about the acquisition target – which is what makes this company so interesting to watch. 

BREZ Plans to Acquire TV Ammo, Inc. 

In a press release issued in November 2022, Breeze Holdings Acquisition Corp. announced plans to acquire TV Ammo, Inc., also known as True Velocity or True Velocity Ammo. So, what’s the TV Ammo story?

The company launched its business with the goal of improving upon the tools available to the United States military through the use of cutting-edge technologies. The company did so by producing a lightweight composite-cased ammunition solution. 

What’s the big deal?

Lower Cost of War in Terms of Casualties & Dollars

When our soldiers walk, fly, or drive into battle, they carry a significant amount of weight with them. Much of that weight is in the form of brass-cased ammunition. Increased weight means slower movement for those on foot and an increased need for fuel for ground and air assets. Ultimately, a heavier load means fewer soldiers make it home to their families while more money is spent on fuel for battle. 

That’s where composite-cased ammunition comes in. True Velocity ammunition is between 30% and 32% lighter than its brass-cased counterparts, depending on the type of ammunition you compare. That means that for every 100 pounds of ammunition a soldier has to carry around, TV Ammo takes between 30 and 32 pounds off his shoulders. 

Not to mention, TV Ammo’s rounds are proven to be more accurate than traditional brass-cased ammunition, further increasing our soldiers’ ability to make it back home. 

Relieving Brass Supplier Dependency

There’s no question that the world is changing before us. Superpowers around the world continue to vie for power and the threat of war is ever-present. That’s a problem if we can’t get our hands on brass. 

For the past 175 years, every shell casing used by the United States military has been a brass casing. So, it’s important to consider the suppliers of this key metal. 

Brass is a derivative of copper. If you look into the world’s leading copper producers, you’ll find that many of them are direct adversaries of the United States. Many of those that aren’t direct adversaries of the United States are controlled by direct adversaries of the United States. 

This means that in a worst-case scenario, we could face real difficulties getting our hands on the brass needed to sustain a war if one were to break out. 

True Velocity solves this problem. 

The company’s composite-cased ammunition is manufactured in Texas and doesn’t require any basic materials from anywhere other than the United States. 

This Is Just the First Step

At the moment, True Velocity is focused on ammunition, but you have to imagine that’s not going to be where they start. The company was able to make significant strides in a technology that hasn’t been updated in over 175 years, ammunition. In doing so, it has the potential to reduce casualties on the battlefield. 

If the company was able to reduce ammunition weight by 30% or more, one can only imagine what technological innovations will come out of the team next – with each one making life easier for our soldiers. 

The Deal Happens Soon

By August of this year, Breeze Acquisition Holdings Corp. will close the deal with TV Ammo, bringing TV Ammo to the public market at around a $1.2 billion valuation. As a result, there’s an opportunity right now to get in on the ground floor in a SPAC that has the potential to make big things happen for your portfolio and our military. 

Article Resources:

https://www.sec.gov/Archives/edgar/data/1817640/000121390022068368/ea167835-425_breezehold.htm

https://www.globenewswire.com/en/news-release/2022/11/01/2545238/0/en/Breeze-Holdings-Acquisition-Corp-Announces-Definitive-Agreement-to-Merge-with-TV-Ammo-Inc.html

https://en.wikipedia.org/wiki/List_of_countries_by_copper_production

Disclosure: CNA Finance is not an investment advisor or broker-dealer. This article is not a solicitation to buy or sell any security and was designed for information purposes only. This article was written by Joshua Rodriguez and shares his true opinion, which may not be the opinion of the publication it appears on. This is a sponsored publication for which CNA Finance received compensation. Trading and investing in stocks involve risk. CNA Finance suggests you speak with your personal financial advisor or investment advisor before making any investment decisions. 

Yesterday was a rough day for Camber Energy (NYSEAMERICAN: CEI), with the stock falling 3.70% by the closing bell – but that’s good news. I know, you’re probably thinking, “Josh, you’re crazy, nothing about CEI stock falling is good news,” but I’m here to tell you otherwise. After all, yesterday’s declines only expand the potential opportunity. 

The Viking Energy Merger Is Coming

I’ve written two articles about the fact that the storm clouds hanging over the merger between Camber Energy and Viking Energy have dissipated. So, I’m not going to spend too much time here. The simple fact is that this merger is likely to take place – and soon. If you’d like more details as to why I believe the merger is a no-brainer, click here and/or here.   

Today, we’re going to focus on what this merger means for shareholders. 

So, What Does the Merger Mean for Camber Energy Shareholders?

The merger between Viking Energy and Camber Energy is great news all around – especially when you dig into the financials. Let’s start with one of the most important numbers, shareholders equity. 

To determine shareholders equity, you need to subtract a company’s liabilities from the value of its assets owned. The remainder is equity, much like your home’s equity is determined by subtracting the amount of money you owe on your mortgage from the total value of your home. 

When it comes to Camber Energy, shareholders equity was about -$17.12 million as of December 2022, which included an approximate $7.6 million derivative liability component associated with Camber’s remaining Series C Pref. Stock which is a fraction of the previously outstanding amount Viking Energy’s shareholders equity was positive as of December 2022, meaning on the closing of the merger Camber’s negative equity will be a thing of the past. Further, as the remaining Series C Pref. Stock is extinguished the derivative liability component will decrease, thus increasing Camber’s shareholders equity.

The difference in revenue is also monumental. 

In 2022, Viking Energy produced about $24 million in revenue while Camber Energy produced about $597,260. During the year, Camber lost about $11.16 per share while Viking’s loss was just $0.13 for the year. So, losses are likely to shrink drastically, and with the combined assets and capabilities, the two companies may be able to squeak out a profit in the near-to-mid term. 

The Bottom Line

The bottom line here is simple. All signs suggest the merger investors have been waiting for between Camber Energy and Viking Energy will be taking place within the coming months. When this happens, CEI, the surviving company, will have plenty of shareholders equity on its books, revenue worth writing home about, and a path to profitability with far fewer bumps in the road. That’s enough to excite just about any investor!

Article Resources

• https://ycharts.com/companies/CEI/shareholders_equity
• https://www.alphaquery.com/stock/VKTX/fundamentals/quarterly/shareholders-equity
• https://www.macrotrends.net/stocks/charts/VKIN/viking-energy/revenue
• https://www.marketwatch.com/investing/stock/cei/financials
• https://finance.yahoo.com/quote/CEI/financials?p=CEI
• https://www.macrotrends.net/stocks/charts/VKIN/viking-energy/eps-earnings-per-share-diluted

Disclosure: CNA Finance is not an investment advisor or broker-dealer. This article was written by Joshua Rodriguez and expresses his personal opinion of Camber Energy but should not be construed as a solicitation to buy, sell, or otherwise trade any specific security. This is a sponsored article and should not be considered investment advice. Investing comes with risk and CNA Finance strongly advises investors to seek advice from licensed professionals before making any investment decisions. 

In February of 2021, Camber Energy Inc (NYSEAMERICAN: CEI) and Viking Energy Group Inc (OTCMKTS: VKIN) announced a coming merger. The merger was great news. Camber already owned the majority of Viking Energy and considering the synergies and growth of Viking, the merger was sure to bring CEI to the next level. It was great for Viking too. Through the merger, the OTC stock would find its way to a major exchange – opening the door to fundraising opportunities nonexistent on the OTC. Things were looking up. 

That is, until the United States Securities and Exchange Commission (SEC) had questions about Series C Preferred Shares. In a nutshell, these shares were somewhat toxic. They gave the holders the ability to dilute the stock heavily – something that’s never good news for shareholders. 

So, if Series C Preferred Shares set the stage for heavy dilution, why am I even talking about CEI? Well, the times are changing and the opportunity is quickly becoming one that I believe is hard to ignore. 

Toxicity Is Largely Alleviated & the Merger Is Likely Ahead

If there’s one thing I want to get across in this article, it’s simple:

The dark cloud that’s been hanging over the Camber Energy/Viking Energy merger for about a year and a half has dissipated, setting the stage for bright sunny skies ahead.

As mentioned above, the merger between Camber Energy and Viking Energy had been delayed as the result of shares that seemingly amounted to convertible debt with no floor. That’s painful, but that seems to be over. 

Well over 90% of the shares that halted the merger and threatened dilution have been taken off the books since the announcement of the acquisition. As a result, significant dilution seems to be a thing of the past for Camber and I’d be surprised if the merger didn’t go through in the next few months. 

What Does All This Mean for the Stock?

This is where things get very interesting in my humble opinion. Camber hasn’t had the best of times in the market through the delay of the merger and the dilution that followed in an effort to get out from under the toxic shares, for lack of a better way of saying it. YTD, the stock is down over 35% and over the past year, it’s given up more than 90% of its value. 

However, this has the potential to be a good thing.

Essentially, CEI’s merger delay and subsequent shedding of relatively toxic shares resulted in the stock’s value divebombing – creating a significant undervaluation. Over the past year and a half, a dark cloud hung over the stock, keeping CEI down and striking fear in investors – investors who continuously fled the ticker. 

Now, we have a situation where the company is nearly ready to close a transformative acquisition, but it’s still trading as if it never worked to get rid of those toxic shares. That creates an opportunity. 

The way I see it, when the public realizes the work CEI has done and the fact that the Viking merger is likely to close ahead, the stock is likely to push toward a more reasonable valuation – meaning significant growth could be ahead. 

Why This Merger Is Important

The merger between Camber and Viking brings significant value to Camber shareholders. That’s because much of the company’s value is already derived from its majority ownership in Viking. Combining the two companies only makes sense. But what exactly is Viking and where does that value come from?

Viking Energy has four divisions:

1. Power Solutions & Clean Energy. Viking Energy’s majority-owned subsidiary, Simson-Maxwell, Ltd. is a leading manufacturer and supplier of power generation products, services, and custom energy solutions. The company has been operating for more than 80 years and currently services over 4,000 maintenance contracts. 
2. Waste Treatment System Using Ozone. Viking also owns a cleaner, more sustainable way to get rid of waste for clients like laboratories, hospitals, and the military. 
3. Open Conductor Detection Technology. Viking Protection Systems, LLC and Viking Sentinel Technology, LLC, two majority-owned subsidiaries of Viking Energy Group, own the intellectual property rights to fully developed, patent-pending, ready-for-market proprietary Electrical Transmission and Distribution Open Conductor Detection Systems. 
4. Resources. Finally, Viking, through majority-owned subsidiaries, owns interests in oil and gas resources in the U.S..

The Bottom Line

The bottom line here is simple. Camber Energy has been battered in the market over the past year and a half or so. However, the dark clouds are becoming a thing of the past and it seems as though brighter skies are ahead as the heavy dilution weighing on the stock has largely been lifted the merger between Camber and Viking finally seems to be coming to a close. 

Article Resources

• https://www.vikingenergygroup.com/news-media/press-releases/detail/98/viking-energy-and-camber-energy-execute-definitive-merger
• https://www.vikingenergygroup.com/assets/waste-treatment-system-using-ozone
• https://www.vikingenergygroup.com/assets/power-solutions
• https://www.vikingenergygroup.com/assets/open-conductor-detection-technologies
• https://www.vikingenergygroup.com/assets/resources 

Disclosure: CNA Finance is not an investment advisor or broker-dealer. This article was written by Joshua Rodriguez and expresses his personal opinion of Camber Energy but should not be construed as a solicitation to buy, sell, or otherwise trade any specific security. This is a sponsored article and should not be considered investment advice. Investing comes with risk and CNA Finance strongly advises investors to seek advice from licensed professionals before making any investment decisions.