 soared by 18.28% on Monday as Crystal Amber raised its stake by just under 9% to 23.09%.){kind=link}
Hurricane Energy Share Price
The Hurricane Energy share price (LON:HUR) soared by 18.28% on Monday as Crystal Amber, the company’s main shareholder, raised its stake by just under 9% to 23.09%. It is a continuation of an outstanding run which has seen the company’s share price rise by 240.83% over the past month. However, despite the recent run, at 4.02p, it remains well below its pre-pandemic level of 15.64p per share.
Crystal Amber Takes Additional Control
Investors expressed joy at Crystal Amber’s additional holding, which it is expected will give the investment fund more say in how Hurricane Energy operates.
The investment company had previously been trying to convince the company’s board to appoint new directors.
Crystal Amber increasing its holding in the oil company also serves to explain why the Hurricane Energy share price has been rising over the past week.
Other Issues
In June, Hurricane Energy, failed in its efforts to implement a financial restructuring that could have wiped out its shareholders.
The oil company’s plan would have given control of Hurricane Energy too bondholders in exchange for writing off $50m of debt, as well as extending the maturity date on an additional $180m of bonds set to be replied in around 12 months. However, it was rejected by the UK’s high court.
Crystal Amber strongly opposed the move by Hurricane Energy, while chief executive Antony Maris suggested it was a “necessary step” to secure the firm’s future.
The result caused the chairman and non-executive directors of Hurricane Energy to resign from their positions.
The downgrade of the company’s reserves at its Lancaster oil field also posed a significant threat to the company’s future as its output estimates plummeted dramatically.
Investors will be keeping a close eye on the Hurricane Energy share price as the activist investor continues its efforts to have more say in how the company is run.