Shares of Camber Energy (NYSEMKT:CEI) stock hit a new 52-week low of 6.2 cents after the company disclosed that its board had approved a 1-for-50 reverse stock split. The number of authorized shares will decrease to 20 million from one billion following the reverse split. Meanwhile, outstanding common shares will decrease to approximately 16.3 million from 814.4 million. Camber added that “Any fractional shares resulting from the Reverse Stock Split will be rounded up to the nearest whole share on a per shareholder basis.”
A 1-for-50 reverse stock split means that a shareholder will receive 1 share on the day that the reverse split is completed for 50 shares currently held. Furthermore, ownership of the company will remain constant, as the current stock price will be multiplied by 50. Camber anticipates the reverse split to be active as of the market opening on Dec. 30.
Dear CEI Stock Fans, Mark Your Calendars for Dec. 30
On Nov. 7, the company received a compliance notice from the New York Stock Exchange. The NYSE noted that Camber had failed to meet its minimum bid price requirement of 20 cents. The primary reason for the reverse split is to address this failure and increase the stock’s price by cutting supply.
Camber added that the split would be completed to “expeditiously meet the low price per share selling price requirements of the NYSE American and to reduce the risk of the Company being automatically delisted from the NYSE American due to the trading prices of its common stock falling below a price which the NYSE American views as abnormally low.”
The energy company was recently mentioned in a $100 million lawsuit filed against eight financial influencers, including @MrZackMorris on Twitter. From January 2020 to the present day, the group made over $100 million by participating in a pump-and-dump scheme. The group used their millions of Twitter followers and a Discord group called Atlas Trading to assist with the scheme. Two group members allegedly made over $4.5 million from CEI between September to October of 2021. Other companies mentioned in the lawsuit include Meta Materials (NASDAQ:MMAT) and Vislink Technologies (NASDAQ:VISL).
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
