- The stock price of Camber Energy Inc (NYSEAMERICAN: CEI) increased by over 8.5% during intraday trading this morning. This is why it happened.
The stock price of Camber Energy Inc (NYSEAMERICAN: CEI) increased by over 8.5% during intraday trading this morning. Investors have been responding to an 8-K filing today.
In the filing, Camber Energy said that on September 11, 2021, the audit committee of the board of directors of the company concluded that between August 2016 and April 2021 any sales of the company’s Series C Convertible Preferred Stock should have been classified in the company’s financial statements outside of “permanent equity.”
In April 2021 corrections and/or amendments to the Certificate of Designation (COD) of the preferred stock were executed by the company and the holders of the preferred stock to remove terms that supported classification outside of permanent equity and add terms to support classification as permanent equity. The specifics of such corrections and/or amendments were set out in the Current Report on Form 8K filed by the company with the Securities and Exchange Commission on or about April 21, 2021.
As result of the incorrect classification of any applicable sales of preferred stock for the period between August 2016 and April 2021, the financial statements for the periods between the fiscal year ending March 31, 2017 through the quarter ending September 30, 2020 should no longer be relied on. And any previously furnished or filed reports, related earnings releases, investor presentations or similar communications of the company describing its financial results for the Impacted Filings should no longer be relied upon.
Camber Energy plans to file restated financial statements for the years ended March 31, 2019, and March 31, 2020, on Form 10-K/A and to file restated financial statements for the quarterly periods ended June 30, 2020, and September 30, 2020, on Form 10-Q/A — in each case to reflect the classification of the Preferred Stock outside of permanent equity.
In some of the stock trading forums on social media, some investors said that it is good the new board and CEO are doing some housekeeping. It’s also worth mentioning that CEI is heavily favored by investors who are active on social media partially due to the characteristics it has for a short squeeze opportunity. As a result, the stock price of CEI increased over 300% in the past month.
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