Concerned about your investment in Viking Energy Group, Inc.?
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk oil and gas investments, like Viking Energy Group Inc., to its clients.
Viking Energy Group, Inc., an independent exploration and production company, focuses on the acquisition and development of oil and natural gas properties in North America. The company owns oil and gas leases in Kansas, Missouri, Texas, Louisiana, Mississippi, and Alberta.
According to SEC filings, Viking Energy Group Inc. filed a form D to raise capital from investors in 2017. The offering type was equity and debt and the total offering amount was purportedly $4,500,000.
The company is currently in the process of a pending merger transaction with Camber Energy, Inc. (CEI), another independent oil and natural gas company, and they are reportedly working to finalize an amendment to Camber’s Registration Statement on Form S-4, according to a press announcement on October 9, 2020.
The planned merger considers Camber issuing newly-issued shares of common stock and Series A Convertible Preferred Stock to the equity holders of Viking in exchange for 100% of the outstanding equity securities of Viking by means of a reverse triangular merger in which a newly formed wholly-owned subsidiary of Camber will merge with and into Viking, with Viking continuing as the surviving corporation and as a wholly-owned subsidiary of Camber after the merger.
If the closing of the merger occurs the Viking equity holders prior to the merger will own approximately 80% of Camber’s fully-diluted common stock immediately after the merger, and the Camber equity holders prior to the merger shall own approximately 20% of Camber’s fully-diluted common stock immediately after the merger, subject to adjustment mechanisms set out in the merger agreement.
The merger is apparently subject to a number of closing conditions.
According to MarketWatch, shares of Camber Energy (CEI), currently traded on the NYSE, are down more than -80% in the past 12 months.
Investigating Potential Securities Claims
Energy investments such as Viking Energy Group Inc. typically involve a high degree of risk. The energy market has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities. These investments may seem wise at first, until the dramatic drop in distributions.
Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.
If you are concerned about your investment in Viking Energy Group Inc., The White Law Group may be able to help. Please call the offices at 888-637-5510 for a free consultation with a securities attorney.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, please visit https://www.whitesecuritieslaw.com.