Camber Energy Announces the Completion of its Due Diligence on its Planned Acquisition of Lineal Star Holdings

Source Press Release
Company Camber Energy, Inc. 
Tags Pipelines/ tankers/ distribution, Corporate Deals, Deals, Oil Services
Date May 13, 2019

Camber Energy, Inc. (NYSE American: CEI) (the ''Company'' or ''Camber''), based in Houston, Texas, today announced that it has completed its due diligence on Lineal Star Holdings ("Lineal"),  , 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. Louis G. Schott, the Interim CEO of Camber noted, "We have performed our necessary diligence on Lineal and are in the process of negotiating final transaction documents and terms."

Mr. Schott added, ''Through our diligence, we have become more excited about the Lineal team, their existing business and their planned growth.""

Their existing base of business with top tier companies and very large portfolio, provides opportunities for growth in upstream, midstream and downstream pipeline services in various basins throughout the United States."

Mr. Schott further stated, "We also continue to focus on acquisition targets that could further expand our offerings, capabilities and opportunities for revenue and growth."

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, including structuring the transaction to be on a tax free basis, 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, which conditions may not be satisfied in a timely manner, if at all. The transaction contemplates the issuance of 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, it is contemplated that the shareholders of Lineal will have voting control of the company.

The transaction may not close timely, on the terms set forth in the previously executed 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 the next fifteen days, which agreement and definitive terms associated therewith will be included on a Form 8-K filed by the Company.

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