- Shares of Camber Energy, Inc. (NYSEAMERICAN: CEI) rose more than 9% before market launch today. That’s why it happened.
Shares of Camber Energy, Inc. (NYSEAMERICAN: CEI) rose more than 9% before market launch today. Investors appear to be responding positively to ESG Clean Energy – developers of net carbon footprints and clean energy solutions for distributed power generation – issuing a statement in response to a report by Kerrisdale Capital on Camber Energy and Viking Energy Group (OTCQB: VKIN) which, according to ESG, contains misleading and inaccurate information about ESG.
“Kerrisdale Capital published a research report on Camber Energy Inc. (CEI). It is not an independent and disinterested report. Kerrisdale Capital is a short seller who held and may still hold positions in shares of CEI. This report includes misinformation about the Scuderi Group technology and a licensing agreement between ESG Clean Energy and Camber / Viking. We welcome this opportunity to correct this information, ”ESG wrote in the letter. “The Scuderi Group and the SEC have reached a settlement regarding events that occurred over ten years ago. The Scuderi Group neither admits nor denies the claims contained in the regulation. The regulation has nothing to do with the technology or the license agreement with ESG Clean Energy or the Camber license agreement.
ESG also noted that Kerrisdale Capital is mistakenly suggesting that there is something unusual about their licensing agreement, but that is not correct.
“Most technology license agreements provide for an upfront fee paid at the close of the license agreement and a running royalty generally based on a percentage of revenue. (In ESG’s license with Camber, a portion of the upfront fee will be paid in Viking shares, “the letter says.” This further underscores ESG’s faith in the technology.) Higher up-front fees result in royalties. lower operating costs, and lower up-front charges result in higher operating charges. A license can have zero upfront costs and still be of great value to both the licensee and the licensor. The amounts are a compromise negotiated between the parties. Typically, a higher up-front charge means the licensee bears a greater risk of the technology’s success, and a lower up-front charge and a higher royalty transfers more of the risk to the licensor. A license agreement with an upfront fee of $ 5 million and a running royalty of 15% reflects the risk each party is willing to take. The structure of the agreement does not determine its economic benefit.
Kerrisdale had published a report on short sellers on Camber Energy about a month ago claiming the company is a “former oil producer” that has not filed financial statements with the SEC since September 2020 and is at risk of having its shares delisted. Camber Energy has an approximate 73% interest in Viking Energy, which is an over-the-counter company. In early September, ESG Clean Energy announced that it had signed a license agreement with Viking Energy Group for the exclusive rights to use ESG’s CO2-free power generation technology across Canada.
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