The Camber Energy Inc (NYSEAMERICAN: CEI) stock price rallied 78.2% after the company brought forward the date for its 1-for-50 reverse stock split to meet the NYSE American Company’s Exchange listing requirements.
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The energy company had initially planned to effect the reverse stock split on December 30, 2022, but changed its mind and brought forward the effective date to December 21, 2022. It was unclear exactly what prompted the changes.
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Camber Energy received a non-compliance letter from the NYSE American in November after its stock failed to trade above the $0.20 threshold required for listing on the exchange, which necessitated the reverse stock split.
People familiar with exchange listing rules will notice that the listing requirement for the NYSE American exchange is 20 cents compared to the $1.00 minimum required by the Nasdaq exchange, which is an interesting factoid.
The exchange gave Camber Energy up to May 7, 2023, to bring its stock price in line with the listing requirements, but it seems that the company’s management was in a hurry to regain compliance with the NYSE American exchange’s rules.
Camber Energy’s 1-for-50 reverse stock split will reduce its authorized shares from one billion to 20 million. In contrast, its ordinary share count will shrink from 814.4 million shares to 16.3 million shares following the split.
Retail investor interest in the stock remains pretty high since over 32.55 million shares had changed hands at the time of publishing.
In other news, Camber Energy was mentioned in a $100 million lawsuit against eight influencers in the financial and stock trading niche involved in various pump-and-dump schemes by promoting certain stocks to their audiences, mostly retail investors.
Given the upcoming reverse stock split, I would wait and buy CEI stock after the reverse split is completed to ensure that my shares are not split in fractions.
*This is not investment advice.
Camber Energy’s (CEI) stock price.
The Camber Energy stock price rallied 78.22% to trade at $0.11, rising from Friday’s closing price of $0.0620.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.