Camber Energy, Inc. (CEI), an independent oil and natural gas company have surged 7.64% in the premarket trading session. As a result, CEI stock was changing hands at $1.55 when last checked. On Tuesday, CEI stock declined by 11.66% and closed the day at $1.44. The decline came after numerous law firms announced that they had been investigating claims for violations of securities law.
Investigations against CEI
Law firms like Schall, Bragar Eagle etc. focused on whether CEI issued false or misleading information as well as failed to disclose the information necessary for investors. The company was a subject of a report published by Kerrisdale Capital on 5th October 2021. The title of the report was “Camber Energy, Inc. (CEI): What If They Made a Whole Company out of Red Flags?” The report alleged that the company had failed to file the financial information with the Securities and Exchange Commission for the last year. Besides, it said that the company is in danger of having its stock delisted in near future. Also, the report said that the company only actual asset, namely a 73% stake in OTC-traded Viking Energy Group, is in hot waters. The report estimated that the fully diluted share count of CEI is about triple the widely reported number.
Q2 2021 financial results
Earlier this month, CEI reported financial results for the second quarter of the fiscal year 2021 which ended on 30th September 2021. The company had cash and cash equivalents of $1.11 million on 30th September. The total assets were $11.79 million and total liabilities were $1.61 million. The total revenue for the three months was $57,458 against $92,753 for the same period of 2020. Total operating expenses for the three months were $0.88 million against $1.13 million for the same period of 2020. The operating loss for the quarter was $0.82 million against $1.04 million for the same quarter of 2020. The net loss for the period was $2.05 million against $0.27 million for the same period of 2020. The net loss per basic and diluted share for the period was $0.19 against $4.40 for the same period of 2020.
What’s ahead for CEI?
A thorough look a statistics reveals that CEI stock has increased by more than 160% despite these recent investigations against the company. The reason seems to be a strong quarterly performance. Analysts believe that once CEI comes clean out of these ongoing investigations, it would continue its journey on the path of success in the future.