Camber Energy Closes $100 Million Equity Transaction with Institutional Investor

Rhea-AI Summary

Camber Energy, Inc. (NYSE American: CEI) announced an institutional investor's purchase of 10,544 shares of convertible preferred stock on December 31, 2021, for a total of $100 million. The acquisition includes $5 million in cash and four Promissory Notes totaling $95 million, payable in 2022. Each Note is linked to 2,636 shares of preferred stock. Additionally, warrants were issued allowing purchase of up to 100 million common shares at prices of $2.00 and $4.00 per share. This funding will facilitate new acquisitions and strategic initiatives throughout 2022.

Positive

• Acquisition of $100 million through convertible preferred stock enhances liquidity.
• Funding enables pursuit of new acquisitions and value-added initiatives in 2022.
• Warrants issued for 100 million common shares provide potential for future capital infusion.

Negative

• Investor cannot convert shares until Promissory Notes are fully paid, limiting immediate stock conversion.
• Structure may create uncertainty regarding the actual acquisition of funds depending on the company's discretion to redeem shares.

Unique Structure Gives Camber Unprecedented Optionality

HOUSTON, TX / ACCESSWIRE / January 6, 2022 / Camber Energy, Inc. (NYSE American:CEI) ("Camber" or the "Company") is pleased to announce that on December 31, 2021 an institutional investor purchased 10,544 shares of newly designated convertible preferred stock for a purchase price of $100,000,000.

The purchase price was paid by the Investor via payment of $5 million in cash and the execution of four Promissory Notes (each a "Note") from the Investor in favor of Company, each in the amount of $23.75 million and payable by the Investor to the Company on March 31, 2022, June 30, 2022, September 30, 2022 and December 31, 2022, respectively. There are 2,636 shares of Preferred Stock associated with each Note, and the Investor may not convert the shares of preferred stock associated with each Note into common shares or sell any of the underlying common shares unless the Note is paid in full by the Investor. The Company may in its sole discretion redeem the Preferred Stock prior to any Note being paid in full.

The Company also issued warrants entitling the Investor to purchase up to 100 million common shares of the Company at an exercise price of $2.00 per share for the first 50 million shares and an exercise price of $4.00 per share for the remaining 50 million shares.

James Doris, President and Chief Executive Officer of Camber, commented, "With the funding commitment in place we can confidently pursue new acquisitions and other important value-added initiatives throughout 2022, yet we have the option of redeeming all or a portion of the shares and not accept the funds if we do not believe it is in the best interest of the company to do so at the particular time. The structure was purposely designed to provide the organization with unprecedented optionality. "

The foregoing description of the transaction is subject to and qualified in its entirety by Camber's Current Report on Form 8-K filed with the Securities and Exchange Commission ("SEC") on January 5, 2022, and available under "investors" - "SEC filings" at www.camber.energy.

About Camber Energy, Inc.

Camber Energy, Inc. is a growth-oriented diversified energy company. Through its majority-owned subsidiary, Camber provides custom energy & power solutions to commercial and industrial clients in North America and owns interests in oil and natural gas assets in the United States The company's majority-owned subsidiary also holds an exclusive license in Canada to a patented carbon-capture system. For more information, please visit the company's website at www.camber.energy.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Any statements that are not historical facts contained in this press release are "forward-looking statements", which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions or economic conditions with respect to the oil and gas industry, the COVID-19 pandemic, the performance of management, actions of government regulators, vendors, and suppliers, our cash flows and ability to obtain financing, competition, general economic conditions and other factors that are detailed in Camber's filings with the Securities and Exchange Commission. We intend that all forward-looking statements be subject to the safe-harbor provisions.

Contact Information
Investors and Media:
Tel. 281.404.4387 (ext.3)

SOURCE: Camber Energy, Inc.

View source version on accesswire.com:
https://www.accesswire.com/681230/Camber-Energy-Closes-100-Million-Equity-Transaction-with-Institutional-Investor

FAQ

What was the investment amount made by the institutional investor in Camber Energy on December 31, 2021?

The institutional investor purchased $100 million worth of convertible preferred stock.

How many shares were involved in the convertible preferred stock transaction with Camber Energy on December 31, 2021?

The transaction involved 10,544 shares of convertible preferred stock.

What are the terms of the Promissory Notes associated with the investment in Camber Energy?

The Promissory Notes total $95 million, payable in four installments throughout 2022.

What warrants were issued to the investor during the Camber Energy transaction?

Warrants were issued allowing the purchase of up to 100 million common shares at $2.00 and $4.00 per share.

What does Camber Energy plan to do with the funds obtained from the institutional investor?

Camber Energy plans to pursue new acquisitions and other value-added initiatives.