Unique Structure Gives Camber Unprecedented Optionality

HOUSTON, TX / ACCESSWIRE / January 6, 2022 / Camber Energy, Inc. (NYSE American:CEI) (“Camber” or the “Company”) is pleased to announce that on December 31, 2021 an institutional investor purchased 10,544 shares of newly designated convertible preferred stock for a purchase price of $100,000,000.

The purchase price was paid by the Investor via payment of $5 million in cash and the execution of four Promissory Notes (each a “Note”) from the Investor in favor of Company, each in the amount of $23.75 million and payable by the Investor to the Company on March 31, 2022, June 30, 2022, September 30, 2022 and December 31, 2022, respectively. There are 2,636 shares of Preferred Stock associated with each Note, and the Investor may not convert the shares of preferred stock associated with each Note into common shares or sell any of the underlying common shares unless the Note is paid in full by the Investor. The Company may in its sole discretion redeem the Preferred Stock prior to any Note being paid in full.

The Company also issued warrants entitling the Investor to purchase up to 100 million common shares of the Company at an exercise price of $2.00 per share for the first 50 million shares and an exercise price of $4.00 per share for the remaining 50 million shares.