Camber Energy (CEI) Stock: Climbing On Compliance Announcement

Camber Energy Inc (NYSEAMERICAN: CEI) is having a strong start to the trading session this morning after announcing compliance news regarding its listing on the NYSE. Of course, the news was positive, exciting investors and pushing the stock for the top. Today, we’ll talk about:

  • The compliance update;
  • what we’re seeing from CEI stock as a result; and
  • what we’ll be watching for ahead. 

CEI Announces A Compliance Update

As mentioned above, Camber Energy is having a great start to the trading session this morning after announcing a compliance update. In a press release issued early this morning, the company said that it has released a letter of notification from the NYSE Regulation department. 

According to the notice, CEI is now back in compliance with three of the NYSE American continued listing standards. However, the company said that while it has regained compliance with 3 of the NYSE regulatoions, it is out of compliance as a result of the price of its common stock. 

The company said that the N&B Energy transaction allowed it to improve stockholders’ equity by more than $2 million. The company says that it plans on exploring other opportunities to further increase shareholders’ equity. 

While the company saw a substantial increase in stockholders’ equity through September 30, 2018, the company was getting close to a deadline and needed to further increase stockholders’ equity by $4 million. 

In the release, the company said that it did so through investments by an institutional investors. This brought the company’s sharholders’ equity to more than $7.6 million, well above the $6 million minimum requirement by the NYSE American. 

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

The Company is delighted to receive the letter of continuing listing stockholders’ equity compliance from the NYSE American. This is the culmination of a process that began in August of 2017. We are extremely excited about the resolution of this issue.

Additionally, the Company is now better positioned for acquisition and merger opportunities of which we are actively evaluating.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Camber Energy, the news proved to be positive. While the company still needs to increase its share price, there are options to do so that are not all that difficult. Moreover, with the harder part out of the way, minimum shareholders’ equity, the stock is likely to maintain a long-term listing on the NYSE. 

So, it’s not surprising to see that excited investors are pushing the stock upward. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:09), CEI is trading at $0.60 per share after a gain of $0.073 per share or 13.79% thus far today. 

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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’re interested in following the story surrounding the company’s continued work to regain compliance with the NYSE American’s listing requirements and we’re excited to see that the largest hurdle is out of the way. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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