Camber Energy Announces Revised Letter of Intent with Lineal Star Holdings

Source Press Release
Company Camber Energy, Inc. 
Tags Corporate Deals, Deals, Pipelines/ tankers/ distribution, Oil Services
Date May 02, 2019

Camber Energy, Inc. (NYSE American: CEI) (the ''Company'' or ''Camber''), based in Houston, Texas, today announced a revised letter of intent with Lineal Star Holdings  , the acquisition target which Camber is seeking to acquire pursuant to its previously disclosed letter of intent. Lineal's subsidiaries provide midstream and downstream pipeline integrity services, specialty construction and field services. Lineal's primary operating subsidiary has been in the pipeline integrity, construction and services industry for 64 years. It has Master Service Agreements in Pennsylvania, Ohio and West Virginia, with planned growth in Texas, the Gulf South and Mid-Continent.

It is contemplated that Camber will issue a new series of convertible preferred stock which will be convertible into 67-70% of the fully diluted common stock of Camber after shareholder approval as required under the applicable NYSE American Rules and Requirements. Upon receipt of shareholder approval, the shareholders of Lineal will have voting control of the company.

Mr. Louis Schott, the Interim CEO of Camber stated, ''We are extremely excited about the planned acquisition of Lineal. Their experienced team understands the unique challenges of providing upstream, midstream or downstream pipeline services in various basins throughout the United States. They will bring an existing base of business with top tier companies and a very large portfolio of opportunities."

Mr. Schott further stated, "We are also reviewing several acquisition targets concurrent with our due diligence on Lineal that could potentially expand our offerings, capabilities and opportunities for revenue."

The closing of the Lineal transaction, which is an all-stock transaction, is subject to customary closing conditions, negotiation of final transaction documents and transaction terms, and other conditions, including, but not limited to the consent of the holder of our Series C Preferred Stock, executing an agreement with Camber's Series C Preferred Stock holder amending the Series C Preferred Stock to alter the conversion rights thereof, and obtaining the requisite NYSE American approval. The transaction may not close timely, on the terms set forth in the Letter of Intent, or at all. The transaction is subject to the conditions above, and the parties contemplate entering into a definitive agreement in connection with the transaction in early May 2019, which agreement and definitive terms associated therewith will be included on a Form 8‑K filed by the Company

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd