Camber Energy Inc (NYSEAMERICAN: CEI) is having a strong start to the trading session this morning, and for good reason. The company provided an update with regard to its planned acquisition of Lineal Star Holdings, exciting investors who are pushing the stock for the top. Today, we’ll talk about:
- The acquisition news;
- what we’re seeing from CEI stock as a result; and
- what we’ll be watching for ahead.
CEI Gains On Acquisition News
As mentioned above, Camber Energy is having a great start to the trading session this morning after announcing news with regard to a planned acquisition. The news was released via press release early this morning.
In the release, CEI said that it and Lineal Star are currently finalizing closing documents for the planned transaction. As such, the company expects that the deal will be completed by Friday, May 31, 2019.
The comapny said that the closing of the transaction remains subject to the holder of its Series C Redeemable Convertible Preferred Stock agreeing to the terms, Lineal agreeing to certain terms and other required closing conditions.
In a statement, Louis G. Schott, Interim CEO at CEI, had the following to offer:
We are making significant progress in moving towards the closing the previously announced acquisition and are excited about the opportunities this acquisition will provide for revenue growth and increases in shareholder value. We are very close to having final documents with Lineal. We are also in discussions with the holder of our Series C Redeemable Convertible Preferred Stock and anticipate negotiating definitive documents with such holder in the upcoming days.
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.
After all, the closing of the acquisition transaction seems to be just around the corner. Moreover, this trasaction will provide the company with key assets that will greatly enhance value for investors. So, it’s not surprising to see that the stock is climbing in the market this morning.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (9:59), CEI is trading at $0.24 per share after a gain of $0.032 per share or 15.65% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
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 acquisition news as well as the company’s continued work to drive value for investors. Nonetheless, we’ll keep an eye on the story and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!