NEW YORK, NY / ACCESSWIRE / June 29, 2018 / It was a day of gains for both MagneGas and Camber Energy on Thursday. MagneGas headed higher after announcing that it has completed $556,000 financing while Camber Energy soared on news that the company is selling most of its assets.
RDI Initiates Coverage on:
Camber Energy, Inc.
MagneGas Corporation shares closed up almost 52% on about 34 million shares traded yesterday. The renewable resources and environmental solutions clean technology company announced on Thursday that it has completed a $556,000 convertible preferred offering with its investment banking partners to clear accrued financing expenses. The terms of this transaction were disclosed in an 8-K filing. CEO Ermanno Santilli stated, "We are pleased to complete this transaction. We appreciate the flexibility demonstrated by our banking partners during our rapid growth, and their support has been an integral part of our ability to execute on a series of acquisitions to expand our industrial gas footprint across Texas and California in this year. Our growth strategy has resulted in rapid sales growth of over $1.0 million in monthly averaged for the second quarter of 2018." Chief Financial Officer of the company Scott Mahoney, commented, "This was a very opportunistic, targeted financing designed to clear a sizable liability while preserving our working capital liquidity. We remain highly focused on generating improved cash flows, enhancing liquidity, and reducing our liabilities. This transaction enabled us to make meaningful progress on all three of these fronts."
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Camber Energy, Inc. shares closed up nearly 87% on almost 85 million shares traded on Thursday and saw even more gains in after-hours trading. It was earlier in the week that the struggling independent oil and gas company announced the execution of a non-binding letter of intent on June 25, 2018, in connection with the disposition of a substantial portion of its assets in exchange for the buyer's assumption of all of Camber's debt with its bank, International Bank of Commerce. The company said the buyer is a company that is affiliated with former Camber CEO Richard Azar and board member Donnie Seay. Interim CEO Louis Schott said the sale will help the company achieve compliance with the NYSE. He remarked, "This transaction will position the company to improve its balance sheet by substantially reducing or eliminating its long-term liabilities. Once this occurs, the company plans to pursue growth in its remaining assets as well as additional acquisition opportunities."
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