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CEI action: Camber Energy flirts with the withdrawal of NYSE American

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It has been more than three weeks since the American stock exchange NYSE shipped Camber energy (NYSEAMERICAN:IEC) a letter indicating that it did not comply with the requirements of the exchange continuous enrollment standards. Luckily for CEI stock owners, the company was able to secure an extension until May 20. While the stock price took a hit after the online press release was posted, it has since rallied as investors hunt for bargains in the oil and gas sector, which has been on fire for ever since. 15 months. In 2021 alone, oil prices increased by 50%.

However, without the lax listing standards of the US NYSE, Camber Energy shares would have already been delisted. So if you are thinking of buying CEI below $1, you might want to think again. Despite the lax standards, he could still be delisted in 2022. Here’s why.

CEI action and the low price rule

Most of the NYSE American Continuing Listing Standards have no teeth. For example, you need a market capitalization (cap) of barely $1 million qualify for registration. Camber easily hits the low end with a market cap of $303.5 million.

There are certain financial criteria that companies must meet. Yet these are generally ignored if a company has at least 1.1 million publicly held shares – Camber has 360.1 million outstanding, of which 93.7% is its free float – and a market capitalization of 50 million dollars, which it does.

This is where the low price rule comes in. Both NYSE and Nasdaq have $1 closing bid requirements. Businesses that close below a $1 minimum bid for 30 consecutive working days receive a delay letter. After that, it has 180 days to regain compliance. Often, a business is offered a second 180-day compliance opportunity. If this does not work, radiation may occur. In the American NYSE, he considers a low price of 20 cents, a fifth of the NYSE and the Nasdaq. Currently trading at 86 cents, CEI stock is in no danger of delisting based on price.

It could be for a late filing

The letter sent by the NYSE American on April 1 to extend the deadline for the company to comply with its listing standards is one of many sent by the exchange. His First letter in Camber was January 6th. The exchange asked him to file a 2020 10-K for the nine months ended December 31, 2020, a 10-Q for March 31, 2021, a 10-Q for June 30, 2021, and a 10-Q for the September 30, 2021.

Camber says he will meet those four deposits, plus his 10-K for the period ending December 31, 2021. However, we are 24 days away from the deadline. This issue started in January and is still ongoing.

The last time I wrote about the company was in early November. At the time, I made fun of a FinTwit personality who raised his target price for Camber at $10. I wrote:

“If you’re thinking of buying the oil and gas penny stock, don’t waste your money or your time on this crap. Stock Meme or not, it’s the modern equivalent of Florida swamps.

At the time, it was trading at $1.25. It has been down 33% since. The red flags surrounding this company are extraordinary. It wouldn’t surprise me if Camber Energy were delisted in 2022. So don’t waste your time on this stock.

As of the date of publication, Will Ashworth had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to Publication guidelines.

Will Ashworth has been writing about investing full time since 2008. Publications where he has appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and many others in the US and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.


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