Camber Energy (NYSE:CEI) stock jumped 30% yesterday after partners ESG Clean Energy debunked a short seller report by Kerrisdale Capital Management.
ESG Clean Energy released a statement that includes details of their deal with Camber and explained the structure of the partnership. Kerrisdale Capital highlighted what they thought as irregularities in the license agreement between Camber and ESG several weeks ago.
The response from ESG reads: “Most technology license agreements have an upfront fee paid at the closing of the license agreement and a running royalty usually based on a percentage of revenue. (In ESG’s license with Camber part of the upfront fee will be paid in Viking stock. This furthermore underscores ESG’s belief in the technology).”
Another important part from the statement adds: “KC seeks to downplay the size of the potential market for the technology, but Canada’s carbon tax at $40 per metric ton is the highest in the western hemisphere, and it is expected to increase to $170 per ton by 2030.”
This latest round in the CEI saga prompted large numbers of retail traders to buy the stock yesterday. Volume surged and reached 252 million shares by the close of trade.
CEI is down 2.78% in pre-market trading today but more volatility can be expected.